Talking Points
- GBPUSD weekly opening range in focus ahead of major event risk
- Updated targets & invalidation levels
- Event Risk on Tap This Week
GBPUSD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- GBPUSD consolidating below resistance at 1.5680-1.5700
- Topside breach targets 1.5774 & key resistance into 1.5878
- Interim support 1.5530 backed by 1.5468 & 1.5358
- Daily momentum holding above 50 – outside reversal day – constructive
- RSI close sub-50 alongside a move below 1.5530 would be bearish
- Key Event Risk Ahead: BoE Interest Rate Decision & U.K. Quarterly Inflation Report Tomorrow and U.S. Non-Farm Payrolls on Friday
GBPUSD 30min
Notes: Sterling has continued to consolidate after testing key resistance last week with the weekly opening range highlighting the 1.5530-1.5650 zone heading into key event risk into the close of the week. A breach above 1.57 would be needed to open up the next big leg higher for the pound with such a scenario targeting long scalps into the May high-day close at 1.5774.
A break sub-1.5528/36 shifts the focus to the short-side targeting confluence support into 1.5467. Subsequent support targets are eyed at 1.5420 & the July low-day close at 1.5359. A quarter of the daily average true range yields profit targets of 26-29pips per scalp. Caution is warranted heading into major event this week with the Bank of England Interest Rate Decision & the Quarterly Inflation report tomorrow leading the way into Friday’s highly anticipated U.S. Non-Farm Payrolls employment report.
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Relevant Data Releases
Other Setups in Play:
- AUDUSD Rebound Faces Initial Hurdle- Longs Scalps favored above 7365
- NZDUSD Breakout or Fake-Out? Key Levels to Know Ahead of FOMC, US GDP
- Webinar: Key USD Scalp Levels For Month End- GBP Crosses in Focus
- GBPJPY Defends Monthly Open- Weekly Range Break to Validate Long Bias
- Webinar: Euro Faces May Lows- USD Outlook Murky at Three Month Highs
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)
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