Had been looking weak since yesterday afternoon but small selling in GBP/USD has seen the pair pop up from 0.8613.
Bit of a trendline traffic jam going on so I’d look mainly to the channel line for main support rather than the line from Feb, and also 0.8600 big figure.
Resistance
- 0.8756 res
- 0.8726 strong res
- 0.8668/73 strong res
Current price 0.8632
Support
- 0.8607 broken channel line
- 0.8590 sup & 55 H4ma
- 0.8568 55 wma
- 0.8559/61 sup & 100 H4ma
- 0.8543 200 H4ma
- 0.8538 100 dma
- 0.8518 strong sup, lower channel line, 55 dma
- 0.8512 200 wma
- 0.8508 sup
Wow! Looking at all that support, maybe I should start questioning my short position.
It’s convinced me even more to take profit on this trade down at 0.8600. Even with all that support I still hold the view of the UK doing well over Europe. What I will add into my thoughts is that the UK data has been fairly strong and so it stands to reason that the strength may fade. If the expectations creep up that could affect data price moves in that they may still post positive but illicit a negative reaction compared to expectations. In such a case it will give me better levels to short.
Either way I still fancy short term longs also down near 0.8520 and the channel bottom.
