GBPUSD: long at 1.5377

0.16 gmt

After taking some time off I looked at the charts again this morning. The picture is still somewhat unclear. Gold is pushing up above strong resistance where one would normally expect a more severe correction. This is making the DXY weak while it is sitting on strong support. The UJ is also at strong support (99) and GU has a significant resistance around current levels – 1.5390. EURUSD looks tired and can roll over soon. It looks like the market is waiting for a trigger to move in either direction and I suspect it will come from a sudden drop in gold or a breakdown in the DXY which means higher GU, EU and lower UJ.

Looking at the GBP charts in more detail this pair looks like it is in a well supported bullish trend over the medium term. EURGBP is at a strong support / Fibo level, but nibbling at the lower edges. The GBP data tomorrow will be key to this pair and looking at all the signals from the charts, I reckon it is safe to take a long bet.

Long GBPUSD at 1.5377, hard SL at 1.5320. But might exit around 1.5340 if there is a 4hr close below 1.5350.

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