GBPUSD: Sterling headed higher again

Jim Langlands FX Charts

GBPUSD: 1.3593

Sterling headed higher again on Tuesday, reaching 1.3599 closing on its highs, with traders eying a possible early BOE rate hike on the back of rising inflation. The UK Construction PMI is due today.

With the momentum indicators looking positive, a move above 1.1.3600 would open 1.3650, above which there is little to stop it heading on to 1.3780.

1 hour/4 hour indicators: Up.

Daily Indicators: Turning higher

Weekly Indicators: Turning higher?

Preferred Strategy: The short term momentum indicators are mixed but the dailies look constructive so, as with the Euro, buying dips currently seems to be the plan while keeping a tight stop in place.

Buy GbpUsd @ 1.3560. SL @ 1.3490, TP @ 1.3650

Resistance		Support
1.3700	Minor	1.3550	Minor
1.3670	Minor	1.3520	Minor
1.3656	20 Sept high	1.3500	Minor
1.3620	Minor	1.3480	Minor
1.3599	Session high	1.3465	(23.6% of 1.3038/1.3599)

Economic data highlights will include:

W: UK Construction PMI

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3733
2. R2 1.3667
3. R1 1.3632
PP 1.3566
1. S1 1.3531
2. S2 1.3465
3. S3 1.343

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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