Our take on the pound this morning...
Underpinned by a fading US dollar, and expectations of more parliamentary participation in the Brexit proceedings to be the result of the EU court membership ruling today at 9.30am, the pound munched through several H4 tech resistances yesterday!
Looking over to the weekly candles, we can see that price has recently peeked above the weekly trendline resistance taken from the high 1.3445. Should the bulls maintain this position, the next upside objective falls in at 1.2673: a weekly Quasimodo resistance level. Daily price on the other hand, also chewed through offers at a daily supply zone drawn from 1.2510-1.2415, and now looks set to cross swords with daily resistance pegged just ahead at 1.2557.
Our suggestions: Considering that there is a little ‘wiggle room’ seen on the daily chart to push higher, a long from December’s opening level at 1.2514 could be something to look at. There are a number of technical aspects that support this view. Firstly, the converging H4 trendline support extended from the high 1.2774 that fuses beautifully with the 1.25 handle. Secondly, there’s also the top edge of the recently broken daily supply zone to take into consideration at 1.2510. In our opinion, this is sufficient enough to warrant a long position with an initial target objective placed around the H4 mid-way resistance at 1.2550.
Data points to consider: EU court membership ruling at 9.30am GMT.
Levels to watch/live orders:
• Buys: 1.25 region (dependent on the time of day, this is an area we would consider trading without confirmation, stop loss: 1.2478).
• Sells: Flat (stop loss: N/A).
Looking over to the weekly candles, we can see that price has recently peeked above the weekly trendline resistance taken from the high 1.3445. Should the bulls maintain this position, the next upside objective falls in at 1.2673: a weekly Quasimodo resistance level. Daily price on the other hand, also chewed through offers at a daily supply zone drawn from 1.2510-1.2415, and now looks set to cross swords with daily resistance pegged just ahead at 1.2557.
Our suggestions: Considering that there is a little ‘wiggle room’ seen on the daily chart to push higher, a long from December’s opening level at 1.2514 could be something to look at. There are a number of technical aspects that support this view. Firstly, the converging H4 trendline support extended from the high 1.2774 that fuses beautifully with the 1.25 handle. Secondly, there’s also the top edge of the recently broken daily supply zone to take into consideration at 1.2510. In our opinion, this is sufficient enough to warrant a long position with an initial target objective placed around the H4 mid-way resistance at 1.2550.
Data points to consider: EU court membership ruling at 9.30am GMT.
Levels to watch/live orders:
• Buys: 1.25 region (dependent on the time of day, this is an area we would consider trading without confirmation, stop loss: 1.2478).
• Sells: Flat (stop loss: N/A).
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