GBPUSD: The 4 hour momentum indicators are now turning lower
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:
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W: UK Unemployment
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Interested in GBPUSD technicals? Check out the key levels
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.
