We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Breaking news

Federal Reserve Announce $2.3 Trillion in Loans to Support Economy

Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 4.22% Silver: 2.57% Gold: 2.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/aLOug7Zqhq
  • Fed Chair Powell: - Ability to lend and create money is only limited by the law - BBG
  • Fed Chair Powell: - Expecting Q2 to be very weak - Recovery should be quick when people start returning to work $DXY
  • New York Fed Purchases $6 B in Treasury Coupons
  • Heads Up:🇺🇸 USD U. of Mich. Sentiment (APR P) due at 14:00 GMT (15min), Actual: N/A Expected: 75.0 Previous: 89.1 https://www.dailyfx.com/economic-calendar#2020-04-09
  • Merkel: - Measures to slow virus will not likely need tightening
  • Merkel: - Spread of virus shows signs of slowing in Germany
  • Alongside reports that UK Prime Minister Boris Johnson’s health is improving after he contracted Covid-19 and was moved to an intensive care unit, that should give $GBPUSD a near-term boost. Get your GBP/USD market update from @MartinSEssex here: https://t.co/hhgLDWnX60 https://t.co/aLlYpmWhdk
  • Mnuchin: - Pres. Trump will address more hospital aid in next bill - New Fed facilities will create up to $2.3 T of liquidity - Fed facilities will be flexible
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.76% France 40: 1.65% Wall Street: 1.52% US 500: 1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tM96Oq3y4W
GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175

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

2016-04-11 17:11:00
Michael Boutros, Strategist
Share:

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!

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

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:

Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

---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 and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)

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

DISCLOSURES

News & Analysis at your fingertips.