GBP/USD: Constructive Above 1.3155- Buy the Dip Setup into UK CPI
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GBP/USD: Constructive Above 1.3155- Buy the Dip Setup into UK CPI

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Talking Points

  • GBPUSD remains constructive heading into key UK data
  • Updated targets & invalidation levels
  • Compete to Win Cash Prizes with FXCM's Fo r ex Trading Contest

GBPUSD 120min

Chart Created Using TradingView

Technical Outlook : Sterling is trading within the confines of an ascending pitchfork formation extending off the yearly lows and heading into tomorrow's UK Consumer Price Index (CPI) the focus remains weighted to the topside while above 1.3155 . This level is defined by the 50% retracement of the advance off the August low & the lower median-line parallel and we'll reserve this threshold as our near-term bullish invalidation level.

Interim resistance stands at 1.3372 backed by confluence resistance into 1.3465 where the 100% extension converges on the ML. More significant resistance stands at 1.3534/49 . From a trading standpoint, I would be looking to fade sterling weakness heading into the release with a breach / close above the ML needed to validate the next leg higher in the pound. For the complete setup and to continue tracking this trade & more throughout the week- Subscribe to SB Trade Desk .

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  • A summary of the DailyFX Speculative Sentiment Inde x (SSI) shows traders are net short GBPUSD - the ratio stands at -1.21 ( 45 % of traders are long)- weak bullish reading
  • Long positions are 1.6% lower than yesterday but 1.5% above levels seen last week while Short positions are 7.2% higher than yesterday (unch on the week)
  • Open interest is 3.0% higher than yesterday and 3.5% above its monthly average.
  • The trading crowd has grown further net-short from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a mixed near-term trading bias.

Help fine-tune you entries, click here to lear n more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases This Week

Other Setups in Play:

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---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Clic k H ere 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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