The quid is everyone’s favourite currency today

The pound is shrugging off some of the recent political and Brexit related doom and gloom today as GBPUSD works its way higher towards 1.3200.

Theresa May seemingly putting her foot down on revolt rumours, and traders jumping all over unit labour cost cock-ups have given the pound a new lease of life.

For this rallyette, 1.3200 is likely to proide the first real stiff test.

GBPUSD H4 chart

GBPUSD H4 chart 09 10 2017

Naturally we’re already seeing some resistance into the high 1.31’s but things get stronger into and above 1.3200. That level showed us resistance when we broke through last week and we now have the 200 H4 ma there too. Just above we have the old support level around 1.3220/25, which held for the best part of 2 days before breaking. We’re likely to see decent resistance into that are,a and we could start seeing it from around 1.3210/15, should we get above 1.3200. There’s a trade for both buyers and sellers here depending on which we we go, and my colleague H has already been in and out of this rally with a decent gain.Traders long from the bottom will be watching this area carefully for signs of this rally running out of legs, and most likely, shorts are eyeing this area to re-enter.

Support for this run is sitting around 1.3140/50, 1.3120 and 1.3100.

Ryan Littlestone

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