GBP/USD: Fret Not, a Resolution is during Hand- Critical Support 1.23

Talking Points

  • GBP/USD carves weekly opening operation only above support
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)

GBPUSD Daily

GBP/USD Daily Chart

Technical Outlook:Cable is contrast a near-term support connection during 1.2410/33– this segment is tangible by a 2016 low-day tighten a 100-day relocating normal and is corroborated closely by a 61.8% line of a descending pitchfork formation. A mangle subsequent this symbol shifts a concentration towards support targets during 1.2363 1.2303/17 – bullish cancellation an area of seductiveness for depletion / long-entries. Resistance stands during a Mar highs with a crack above 1.2675-1.27 needed to fuel a subsequent Big leg aloft for sterling.

GBPUSD 240min

GBP/USD 240min Chart

Notes:A closer demeanour during cost movement highlights near-term support during a weekly opening-range lows here. Bottom line from a trade standpoint, I’m looking for a fortitude to this improvement off a Mar convene with 2-equal legs reduce concentration on a 61.8% retracement during 1.2301/32– We’ll preference vanishing debility while above this threshold with a crack above a weekly operation highs / 1.2570 changeable a near-term concentration behind to a long-side.

A entertain of a daily normal loyal operation (ATR) yields distinction targets of 24-28 pips per scalp. Added counsel is fitting streamer U.S. ISM information tomorrow and a latter partial of a week with explanation from BoE Governor Mark Carney Non-Farm Payrolls on Friday expected to fuel increasing sensitivity in their particular crosses.

GBP/USD SSI

  • A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net-short GBPUSD- a ratio stands during -1.16 (46.2% of traders are long)- diseased bullish reading
  • Long positions are 8.6% reduce than yesterday and 8.0% lower from final week
  • Short positions are 5.3% aloft than yesterday and 12.2% aloft from final week
  • Although we can't order out another run during a lows, a recent build in short-positioning alongside loss prolonged seductiveness does serve prominence a bullish SSI bias.

Relevant Data Releases

GBP/USD: Fret Not, a Resolution is during Hand- Critical Support 1.23

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– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex hit him during mboutros@dailyfx.com or Click Here to be combined to his email placement list.

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