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GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175

GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175

Michael Boutros, Strategist

Talking Points

  • GBPUSD near-term rally at risk ahead of UK CPI
  • Near-term outlook constructive while above 1.4175/77
  • Updated targets & invalidation levels

GBPUSD 30min

GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: Sterling broke above the upper median-line parallel extending off the May 30th high last night with the rally testing confluence resistance at the 61.8% retracement of the decline and the 50-line of the proposed median-line formation off the lows, at 1.4285. Heading into tomorrow’s inflation print, the near-term focus remains weighted to the topside while above 1.4175/77 where the lower median-line parallel converges on a Fibonacci confluence and we will retain this level as our near-term bullish invalidation.

A topside breach targets subsequent resistance objectives at the 1.4350, the upper median-line parallel of the ascending structure off the lows and the 88.6% retracement at 1.4406. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

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GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175
  • The DailyFX Speculative Sentiment Index (SSI) has remained net-long the pound since late November with the ratio standing at +1.45 (57% of traders are long- 12.4% lower than the previous day)
  • Short positions are 20.3% higher than yesterday and 13.6% above levels seen last week.
  • Open interest is 1.0% lower than yesterday and 1.9% above its monthly average
  • The decline in long positioning suggests that the retail long-bias may be waning (bullish near-term)

Why and how do we use the SSI in trading? View our video and download the free indicator here

Relevant Data Releases This Week

GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175

Other Setups in Play:

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---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

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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