Conflicting signals make GBPUSD sentiment hard to assess
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.
Non-independent investment research disclaimer applies. Read more