GBP/USD at leg D of Cypher ahead of US durable orders release

FX_IDC:GBPUSD   British Pound / U.S. Dollar
Resistance – 1.4708, 1.4740, 1.4770

Support – 1.4684, 1.4636, 1.46

  • Pair ran out of steam at a high of 1.4740 earlier today, following which a drop to 1.4677 was seen. The pair is now trading around 1.4708 levels, which is the leg D of the Cypher pattern drawn on the daily chart .
  • Note the Leg D in the Cypher Pattern is where offers are expected to come-in.
  • The hourly chart also suggests a bearish price RSI divergence has been formed, thus making 1.4740 a strong resistance.

Focus on US durable goods data

US durable goods orders data is scheduled for release today. Corporate spending is expected to have slowed down in April. The focus is likely to be on capital goods non defense ex aircraft orders, which if strong could overshadow even a weak headline figure and lend support to the US dollar             .

Note that June rate hike bets stand around 38% and could near 50% if the durable goods figure is strong. That would also trigger speculation of hawkish comments from Fed’s Yellen tomorrow.

  • Moreover, a weak day end closing could add credence to Cypher pattern and signal weakness ahead.
  • On the other hand, a horribly weak durable goods report could see the pair take out 1.4740, and move towards 1.4770 levels.
  • Bulls need to take out 1.48 on day end closing basis as that would signal bullish inverted head and shoulder breakout.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out