The British Pound has remained buoyant at the start of the week pushing past prior highs on the lack of fresh perspective. This said the fundamental picture of the UK is little change inflation is easing and manufacturing on a contraction. For today potential driver for the pair will be US Employment Cost Index and Consumer Confidence from the Conference Board with strong numbers potentially sparking some position squaring ahead of tomorrows FOMC meeting.
Resistance
- 1.26204 – 50D Moving Average
- 1.25941/963 – Bearish Trend Line / 50 Fib Retracement
- 1.25738 – Daily Range Play Floor
Support
- 1.25078 – Intraday Consolidation Floor
- 1.24489 – Friday Low
- 1.24215 – Intraday Consolidation Floor
GBPUSD has some key resistances ahead of it with a trend line, 50 Fib retracement level and the 50D moving average poised to cap the upside. Oscillator wise we are overbought in the daily charts making us wary of longs given the combination and proximity. Look for intraday charts to show long wicks at the approach of the trend line as a possible excuse to sell.
