Day trade
Trade view / 20 May 2016 at 5:55 GMT

Conflicting signals make GBPUSD sentiment hard to assess

Partner at 3 C ANALYSIS / 3cAnalysis
United Kingdom

Cable was bought to higher levels for a third day in a row yesterday. But the market lacked momentum, as highlighted by yesterday's report, as the highs were not maintained. This is countered by the fact that net gains were still posted – for a fourth up day in a row – and the Keltner channel is angling higher.

The above conflicting signals make immediate sentiment tough to assess with confidence, but with Keltner channels angling higher we look for setbacks to attract buyers.

Management and risk description

A move to 1.4638 means the stop can be raised to breakeven.


Entry: Buy in 1.4595/00 area and dip to 1.4561.

Stop: 1.4521 offered.

Target: 1.4638 and 1.4664.

Time horizon: Intraday, London 1600 hours (1500 GMT), on Friday May 20.

Above Averages
Above Averages
 Highs not sustained
Highs not Held

Long-term trend

Long Term
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— Edited by Robert Ryan

Non-independent investment research disclaimer applies. Read more
20 May
brian1983 brian1983
i would think best nt to go against the usd.
20 May
brian1983 brian1983
there nds to be another strong data needed for gbp to go up to 1.467 again. but any strong usd data shld b able to send it to retest support at 1.455-6. the better q2 retail is due to more discounts offered but overall average retail prices hv dropped
20 May
brian1983 brian1983
gbp usd may be sideway for a while till nxt wk. if long gbp best to short eurgbp or other gbp-pair
20 May
Allied Allied
Alan - from both a macro and tech position I think your call is good. In order for Brexit to be a issue we need to see the odds or news to turn. I prefer the upside but would like to be long a little lower. 1.45 ish
20 May
Allied Allied
any sign of the polls turning I'd switch direction of course.
20 May
AlanCollins AlanCollins
Certainly think its the right way to be longer term (as per Kim) and but for today, it would have been wiser to look for the dip rather than the open and the dip.
20 May
brian1983 brian1983
there is a new poll out today. of the 1100+ ppl survey it seems more leave. the rally two nite ago seems overdone. so there will be profit taking from the long. The uncertainty of brexit still there and to me, USD is still the best bet amid the june-july rate hike


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