Weekly closing price: 1.4346
Weekly opening price: 1.4457
Weekly view: Last week’s action, as can be seen from the weekly chart, saw the GBP recover from deep within weekly demand logged in at 1.4005-1.4219, eventually chiseling out a nice-looking weekly buying tail! Technically, the next upside target on this scale can be seen around 1.4633 – a weekly broken Quasimodo line. Therefore, it may be an idea to take note of this level as it may come into view sometime this week.
Daily view: Consequent to a monster gap north this morning, cable is now seen trading above daily supply at 1.4297-1.4393 which will now likely form a demand for price to work with. On the assumption that this daily area does indeed become demand, we see little stopping this pair from reaching the aforementioned weekly broken Quasimodo line this week.
H4 view: Over on the H4, the pound started the day at 1.4457, a whopping 111 pips higher than Friday’s close, which came after a strong push north following the UK Prime Minister suspending the current campaign due to the death of British lawmaker MP Jo Cox.
In view of price now flirting with H4 resistance at 1.4463, where does our team go from here? Well, higher timeframe technicals indicate that this pair may want to strike higher prices this week, assuming daily demand at 1.4297-1.4393 holds ground. However, with the 1.45 handle lurking just above a long from 1.4463 is difficult!
Our suggestions: We’re very hesitant trading EUR and GBP pairs this week due to the EU referendum so close to finalizing. High is expected throughout the week and as such technical setups become extremely vulnerable. Given the H4 structure (see above), our team has come to a general consensus that remaining on the sidelines today, especially after such a strong weekend gap, may be the best path to take today…