Mostly third tier money supply numbers from the UK meant that GBPUSD was centered on US issues as with the rest of the majors. Signs of more inflation pressures in the US quickly saw the greenback gaining ground across the board particularly with another FOMC meeting today in the US where the absence of rate cut talks will likely reinforce yesterday’s dollar move. Note too that for the UK, policy speculations for now is that the BoE will lead the major central banks as far as easing goes.
Resistance
- 1.25861 – Daily Bearish Trend line
- 1.25547 – Intraday High
- 1.25125 – Intraday Consolidation Floor
Support
- 1.24748 – Monday’s Low
- 1.24489 – Friday’s Low
- 1.24215 – Intraday Consolidation Floor
GBPUSD did not actually get to see its bearish trendline before selling off giving us a possible ‘Three Inside Down‘ pattern if we close below Monday’s low. With daily oscillators coming off overbought levels combined with the trend line rejection our immediate focus will be to look for a follow through using an intraday break of 1.24748 as an entry or should we see long wicks coming from intraday resistances. Ultimately bears will be looking for a test of the previous swing lows at 1.22993.
