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Market View

GBPUSD is heading towards major resistance zone!

Friday, February 16, 2018 8:22 AM GMT

The Cable records a new 10 days high following an EU report that describes the possibility of softening EU’s position on pressuring Britain thru the Brexit shift period. The Dollar keeps its bearish bias boosting most USD pairs to the upside. Market is shortly expecting UK news like Retail Sales ex-Fuel (MoM) (Jan) (Previous: -1.6%, Forecast: 0.6%), Retail Sales (MoM) (Jan) (Previous: -1.5%, Forecast: 0.5%) while later US news will follow as Housing Starts (MoM) (Jan) (Previous: 1.192M, Forecast: 1.234M), Building Permits Change (Jan) (Previous: -0.1%, Forecast: 3.5%) and finally Baker Hughes US Oil Rig Count (Previous: 791). Therefore, traders should expect some volatile action during today’s sessions.

Reviewing the technical view of GBPUSD, particularly the daily TF, the pair is strongly bullish. The distance between the price and 5 EMA is rising which can lead to a short-term correction. Stochastics (8,3) is already overbought. Traders should pay attention to the trendline (TL) which acts as resistance.

Daily

Heading to the hourly TF, the pair is very close to a major Fibonacci level, the 78.6%. Therefore, traders may look for potential short trade setups above the current area. The Fibonacci level 61.8% is a potential support, which can be used for intraday buying setups.

Hourly

(EMA = Exponential Moving Average, SMA= Simple Moving Average
5EMA=Blue, 21EMA=White, 200SMA= Yellow)

 

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