GBPUSD has slipped out of its bullish channel and is now trading in the neutral zone between the two blue bands. However, today's candle (still to complete) shows positivity, with price trading off the low for the day. The daily RSI is above 50 (green rectangle) and needs to be watched. If it maintains on the bullish side of 50, the bullish channel, between the upper blue and red bands, may be reclaimed.
The hourly chart suggests that short-term traders are looking to push cable up. The trend-following EMAs and momentum-based stochastic have crossed positively (black ellipses). If the EMAs develop angle and separation and the stochastic maintains in the 80+ region (blue arrow), a bullish underlying momentum will be present.
Key data to watch is Wednesday inflation numbers out of the UK. The prior headline CPI y/y was 10.4%. However, forecasts for this release suggest a single digit print of 9.8%. However, if there are any signs of "inflation persistence" further tightening may be needed.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.