GBPUSD: The 4 hour momentum indicators are now turning lower

Jim Langlands FX Charts

GBPUSD: 1.3851

Sterling has had another seesaw ride after the miss by the December UK Retail Sales on Friday (-1.5%mm v exp of -0.6%, +1.4%yy v exp of +3%), and after reaching a new post Brexit high of 1.3944, it then fell sharply, to 1.3838 before making a partial recovery into the week’s NY close.

1 hour/4 hour indicators: Mixed. –Turning lower? Daily Indicators: Up Weekly Indicators: Up

Preferred Strategy: The 4 hour momentum indicators are now turning lower, while the longer term carts still generally look positive, but Cable remains volatile so caution is warranted. Buying dips seems to be the theme still, but, with a relatively tight SL placed back below 1.3800.

Buy GbpUsd @ 1.3800. SL @ 1.3760, TP @ 1.3940

Resistance		Support
1.4000	Psychological	1.3850	Minor
1.3975	Minor	1.3838	Friday low
1.3942/44	17 Jan high/Friday high	1.3825	Minor
1.3913	18 Jan high	1.3805	18 Jan low
1.3885	Minor	1.3756	17 Jan low

Economic data highlights will include:

W: UK Unemployment

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.4035
2. R2 1.3991
3. R1 1.3927
PP 1.3883
1. S1 1.3819
2. S2 1.3775
3. S3 1.3711

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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