After initial responses to the 0-2-7 vote of the Bank of England’s Monetary Policy Committee saw Cable selling off, weakness in US numbers quickly turned things in GBPUSD’s favor last Thursday though we failed to see a follow through to the rally. At this point market is focused on the US CPI release Wednesday to see if there is room for the Fed to consider cutting rates sooner given the weak economic data of late.
Resistance
- 1.25952 – 50D Moving Average
- 1.25718 – Monday High
- 1.25411 – Friday High
Support
- 1.24882 – 20D Moving Average
- 1.24667 – Bullish Trend Line
- 1.24458 – Last Weeks Low
Much as with the rest of the dollar pairs GBPUSD was a spinning top Friday with price action at the start of the week seemingly suggesting we look for a test of resistances. Indicators show us with daily stochastic extending its bullish crossover inline with our bounce from the trend line, higher low. Immediate resistances however will likely hold thus we see 1.25411 as an exit and may even consider selling from the said price if presented by long wicks in the hourly.
