Fundamentals:- We are taking a short term Fundamental view on the GBP/USD -0.64% at the moment. The USD has gone from strength to strength for many months now; every so often it will produce a pull back and some profit taking. The short term data has been a little worse than expected and with the MPC -0.07% changing its interest rate vote recently we could see a continuation of the GBP strength, at least for the short term.
Technicals:- As you can see from the 1 hour chart we are hovering around an area where there is plenty of support and resistance levels. The recent push up is a sign of buyers coming back into the market, however at an over bought price on the 1 hour chart and current resistance would suggest a slight pull back in its upward path. Overall a retest of the 13330 on short term sentiment is a strong possibility which I intent to profit from.
BUY 13122
STOP 13040
TAKE PROFIT 13340
Technicals:- As you can see from the 1 hour chart we are hovering around an area where there is plenty of support and resistance levels. The recent push up is a sign of buyers coming back into the market, however at an over bought price on the 1 hour chart and current resistance would suggest a slight pull back in its upward path. Overall a retest of the 13330 on short term sentiment is a strong possibility which I intent to profit from.
BUY 13122
STOP 13040
TAKE PROFIT 13340