Fundamentals:- We are taking a short term Fundamental view on the GBP/USD at the moment. The USD has gone from strength to strength for many months now; every so often it will produce a pull back and some profit taking. The short term data has been a little worse than expected and with the MPC changing its interest rate vote recently we could see a continuation of the GBP strength, at least for the short term.
Technicals:- As you can see from the 1 hour chart we are hovering around an area where there is plenty of support and resistance levels. The recent push up is a sign of buyers coming back into the market, however at an over bought price on the 1 hour chart and current resistance would suggest a slight pull back in its upward path. there is a nice stepping upward pattern on the 1 hour and 30 minute chart as in the pic below
I would expect a poke at the bottom line and a fake breakout as the week draws towards the NFP figures at the end of the week. Overall a retest of the 13330 on short term sentiment is a strong possibility which I intent to profit from
buy limit:- 13177
stop loss:- 13107
take profit:- 13340
Technicals:- As you can see from the 1 hour chart we are hovering around an area where there is plenty of support and resistance levels. The recent push up is a sign of buyers coming back into the market, however at an over bought price on the 1 hour chart and current resistance would suggest a slight pull back in its upward path. there is a nice stepping upward pattern on the 1 hour and 30 minute chart as in the pic below
I would expect a poke at the bottom line and a fake breakout as the week draws towards the NFP figures at the end of the week. Overall a retest of the 13330 on short term sentiment is a strong possibility which I intent to profit from
buy limit:- 13177
stop loss:- 13107
take profit:- 13340