It’s the wider levels we need to focus on as GBPUSD also looks for a big level break

  • Cable’s gain helped by USD weakness and solid cross buying vs JPY. EURGBP stable
  • Bonds a big driver too with a jump in UK yields supportive
  • Vols up with 1m ATM vols at 6.47 vs 6.00 earlier
  • Offers seen into 1.3650 with stops on a break
  • 1.3656 marks the 2017 high and a break brings the Feb 2016 lows around 1.3835 into play
  • Barriers noted 1.3700. Possible another at 1.3800
  • Bigger news would be GBP closing in on the 38.2 fib of the 2014 drop at 1.3974. That would ask some questions of long-term shorts. That’s close to old 2016 support around 1.4000
  • Like EURUSD, support on this rally needs to build at 1.3600 and we’re already seeing signs at 1.3610 and minor at 1.3625
  • Stops likely in place below 1.3600
  • 1.3560/70 & 1.3530/40 the main support levels to watch on a dip under 1.3600
  • Biggest support down at 1.3450/55
GBPUSD weekly chart

GBPUSD weekly chart

 

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

Pin It on Pinterest