GBPUSD Rebound Sets Up Clear Scalp Levels Ahead of Major Event Risk
- GBPUSD rebound at initial resistance
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- GBPUSD breaches above monthly open / ML resistance- constructive
- Interim resistance objectives at 1.5460, 1.5511 & 1.5550/67- key resistance
- Interim support & near-term bullish invalidation at 1.5340
- Subsequent key support into 1.5220
- Key Event Risk Ahead: University of Michigan Confidence Survey tomorrow & UK CPI, Unemployment & Retails Sales and the 100-day moving averageU.S. Retail Sales, CPI & FOMC Rate Decision next week
Notes:We’ve been tracking Cable’s rebound off confluence support since early in the week on SB Trade Desk with the advance now approaching the secondary resistance target into 1.5460. The near-term bias remains weighted to the topside while within the median-line formation off the weekly low with subsequent topside objectives at the 100-day moving average, currently at 1.5511, and 1.5551/67.
A break below the 1.54-handle puts us neutral with a move sub-1.5335/40 needed to shift the immediate focus back to the short-side targeting 1.5280 and median-line support. A quarter of the daily average true range (ATR) yields profit targets of 29-31 pips per scalp.
Event risk for the remainder of the week is rather limited with only the University of Michigan Confidence survey’s on tap Friday morning. Although the FOMC policy meeting represents the biggest event risk for the week ahead, retail sales & inflation data out of both countries are likely to fuel added volatility in Sterling and dollar crosses ahead of the rate decision on Thursday.
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Relevant Data Releases
Other Setups in Play:
- Scalping GBPAUD Pullback- Targets in View Ahead of Aussie Data, BoE
- USDCAD Levels to Know Ahead of BoC - 1.3335 Marks Critical Resistance
- USDJPY Battle Lines Drawn Ahead of NFPs- Short Scalps Favored Sub 120.80
- AUDNZD: Rinse & Repeat- Reversal Scalp Back in Play Ahead of GDP
- Webinar: ECB, NFP Report to Carve Opening Range for Euro Crosses
---Written by Michael Boutros, Currency Strategist with DailyFX
Join Michael for Live Scalping Webinars on Mondays on DailyFXat 12:30 GMT (8:30ET)
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.