Not really seeing much of interest on the GBP...
Kicking this morning’s report off from the top, weekly price shows that upside is beginning to wane after shaking hands with a weekly channel resistance taken from the high 1.2673. Regardless of the fact that this barrier was breached back in September, this ascending line has proved worthy in the past and, therefore, may continue to help suppress buying and send the British pound lower.
Sliding down to the daily timeframe, nevertheless, support at 1.3371 was recently forced into the mix. A to-the-pip reaction from here lifted daily price and printed a notable buying tail. For all that though, it’s difficult to judge whether further buying will be seen from here, since weekly sellers are also in the frame!
The British pound shrugged off less-than-stellar UK data on Tuesday on ‘Brexit’ hopes. The GBP was further bid following the release of disappointing US data which led to a break of the H4 mid-level resistance at 1.3450. H4 price, as you can see though, failed to sustain gains beyond this point and began selling off into the US segment. The next area of support can be seen at the 1.34 handle, followed closely by October’s opening level seen on the H4 timeframe at 1.3367 (at which point the unit will be trading back around daily support again).
Direction: Weekly structure indicates further selling could be on the horizon, while daily structure suggests a pullback is a possibility. Aside from this, there is very little to hang one’s hat on in regard to H4 structure i.e. not much in the way of levels with confluence.
Data points to consider: US ADP non-farm employment change at 1.15pm GMT.
Areas worthy of attention:
Supports: 1.34 handle; October’s opening level at 1.3367; daily support at 1.3371.
Resistances: weekly channel resistance taken from the high 1.2673; H4 mid-level resistance at 1.3450.
Sliding down to the daily timeframe, nevertheless, support at 1.3371 was recently forced into the mix. A to-the-pip reaction from here lifted daily price and printed a notable buying tail. For all that though, it’s difficult to judge whether further buying will be seen from here, since weekly sellers are also in the frame!
The British pound shrugged off less-than-stellar UK data on Tuesday on ‘Brexit’ hopes. The GBP was further bid following the release of disappointing US data which led to a break of the H4 mid-level resistance at 1.3450. H4 price, as you can see though, failed to sustain gains beyond this point and began selling off into the US segment. The next area of support can be seen at the 1.34 handle, followed closely by October’s opening level seen on the H4 timeframe at 1.3367 (at which point the unit will be trading back around daily support again).
Direction: Weekly structure indicates further selling could be on the horizon, while daily structure suggests a pullback is a possibility. Aside from this, there is very little to hang one’s hat on in regard to H4 structure i.e. not much in the way of levels with confluence.
Data points to consider: US ADP non-farm employment change at 1.15pm GMT.
Areas worthy of attention:
Supports: 1.34 handle; October’s opening level at 1.3367; daily support at 1.3371.
Resistances: weekly channel resistance taken from the high 1.2673; H4 mid-level resistance at 1.3450.
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