Yesterday (tradingview.com/chart/GBPUSD/1mI4YhD6-11102023-GBPUSD/) I gave a resistance zone and called for a dip below then rally. That worked well, as market came down first, nicely to PZ; found support and rallied up on PPI news, into resistance, came down again back to PZ and eventually closed near the highs (after the FOMC minutes).
GBPUSD has 7 days of up move. Without doubt, momentum is slowing down. Today is US CPI. Based on yesterday's hot PPI data, it would not be unexpected if US CPI is hot. But again, market does not seem to care about it. But anyway, technical wise, IMO, price action shows consolidation, which is neutral to bullish. Unless there is a change, it is bullish unless proven otherwise. Also, price are above the zones.
I have no idea how the CPI will turn out but IMO, a dip is an opportunity to go long for a move higher. 1.2260 is such a level to go long for a move to 1.2400, while if market rallied to 1.2390-2400 on CPI. Look for a short down. That could well be a near term top for a good pullback.
But before US CPI, we have UK GDP earlier. That should already move the market (above applies).
GBPUSD has 7 days of up move. Without doubt, momentum is slowing down. Today is US CPI. Based on yesterday's hot PPI data, it would not be unexpected if US CPI is hot. But again, market does not seem to care about it. But anyway, technical wise, IMO, price action shows consolidation, which is neutral to bullish. Unless there is a change, it is bullish unless proven otherwise. Also, price are above the zones.
I have no idea how the CPI will turn out but IMO, a dip is an opportunity to go long for a move higher. 1.2260 is such a level to go long for a move to 1.2400, while if market rallied to 1.2390-2400 on CPI. Look for a short down. That could well be a near term top for a good pullback.
But before US CPI, we have UK GDP earlier. That should already move the market (above applies).
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Join me for free on Patreon (patreon.com/fademeifyoucan) to receive my daily FX and indices trading plan. DM me to join my new group to learn all my trading levels and to trade together.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.