The British Pound has been one of the major beneficiaries of the perceived turn on sentiment by Fed Chairman Jerome Powell from last week. In the span of a week the currency has seen almost the full range of price action from June, coming up just a little bit short of the high for the last three months. Today we should be getting more clarity on the Fed’s intentions with respect to monetary policy as we see Chairman Powell facing the House Finance Committee. UK wise our only other catalyst for the week will be GDP figures due on Thursday.
Resistance
- 1.28605 – June High
- 1.28458 – Inverted Hammer High
- 1.28195 – Intraday Consolidation High
Support
- 1.28000 – Intraday Consolidation Low
- 1.27683 – Intraday Consolidation Resistance
- 1.27400 – Intraday Consolidation Low
GBPUSD saw an inverted hammer for a daily candle Monday, with its long wick falling slightly short of the high from June. Indicator wise we have the stochastic overbought in the daily picture and pushing into oversold levels in the 4H chart. Given the candles our bias is to look for a bearish break for the pair jumping short should 1.2800 give way. With a preponderance of resistances ahead of prices we will only conside going long at the break of 1.28605 if driven by news.
