GBPUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
GBPUSD in clean ascending channel- Monthly high (so far) tagged key Fib confluence at 1.5680
Topside likely limited by key resistance range 1.5765-1.5780- Broader bias bearish below this mark
Daily RSI suggests momentum remains weighted to the topside, test of key resistance may be likely
Scalps look for entries a bit higher, medium-term corrections to be sold below 1.5780
Medium-term support objectives at 1.5485 & 1.5408
Key Events Ahead- Jobless Claims and Employment data tomorrow 4:30ET
GBPUSD Scalp Chart
Scalp Notes: Bottom Line: Although our longer-term bias remains weighted to the downside, the pair may continue to correct higher in the near-term, offering nimble long-scalps on breaks of resistance and favorable medium-term short entries higher. As with the EURUSD, intra-day RSI has looked constructive since the Sunday open, but as we come into this key technical resistance threshold we may see momentum turn over and offer clear triggers to downside scalps. Watch the region between 1.5585-1.5610 as prices have gotten rather sticky around this range. It’s also important to note that a breech of the highs (our Fib reference point) invalidates the downside scalp targets. The break below 1.55 should get this going, but look out for a possible reaction at key support 1.5408-1.5425 with a break here offering further conviction on our broader directional bias.
*We will remain flexible with our bias with a break above 1.5780 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases. Use this app to distinguish the various trade sessions.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
Daily / 30min
1.5682- 1.5698
June High/ 88.6% Retrace/ 200DMA
Bearish Invalidation
Daily / 30min
1.5765- 1.5780
61.8% Retracement / 100% Ext
Break Target 1
Daily / 30min
1.5820
November Low / Pivot
Break Target 2
Daily
1.5875
February 2013 High
Break Target 3
30min
1.5910
Aug 2012 High / Oct 2012 Low
Support Target 1
Daily / 30min
1.5525
23.6% Retracement
Support Target 2
30min
1.5480 – 1.5495
Weekly Low / 61.8% Fib Ext
Bullish Invalidation
Daily / 30min
1.5408- 1.5425
38.2% Retrace / Breakout Origin
Break Target 1
30min
1.5375
Soft Support / Pivot
Break Target 2
30min
1.5345
50% Retracement
Break Target 3
30min
1.5310
Soft Support / Pivot
Break Target 4
Daily / 30min
1.5265
Key Fib Confluence 50% & 61.58%
Break Target 5
30min
1.5235
Soft Support / Pivot
Break Target 6
30min
1.5200
Big Figure
Break Target 7
30min
1.5153
78.6% Retracement
Average True Range
Daily
126
Profit Targets 28-30pips
Other Scalp Setups in Play- Euro to Face OMT Hearing- Short Scalps Favored Below 1.3340
For updates on this scalp and more setups follow him on Twitter @MBForex
—Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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Source: Daily fx
