The British Pound saw a brief peak above 1.27094 against the Dollar before spending the rest of Monday in its earlier consolidation zone. We have little to watch out for as potential catalyst to drive Cable with mostly jaw boning from FOMC members and the BoE’s Andrew Bailey at 1700GMT. Next key data for the UK will still be on Thursday with Flash Manufacturing and Services, and Friday all important domestic consumption.
Resistance
- 1.28034 – Daily High March 21
- 1.27587 – Previous Intraday Consolidation Resistance
- 1.27094/255 – April High / Monday’s High
Support
- 1.26433 – Intraday Range Play Floor
- 1.25830/949 – 50D Moving Average / Daily High 5/06
- 1.25362 – Bullish Trend Line
Even as we have higher highs in GBPUSD for the past two weeks on a daily basis, Monday’s wick underscores the absence of a market driver for the pair. The presence of a daily scale resistance and an overbought oscillator makes for an interesting situation. A close above 1.27094 on a daily level suggests further scope on the upside, while a break of the current consolidation in an hourly scale could trigger a pullback to 1.26433 then the daily moving averages.
