GBPUSD Daily Forecast May 09 2018

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GBPUSD: Around Critical Support But Remains Vulnerable To The Downside!

Recommendations: Short positions below 1.3485 levels with 1.3430 & 1.3377 as next targets.

Alternative scenario: Stability above 1.3485 may bring limited gains to the 1.3560/1.3600 levels before another fall.

Description: The pair is bearish at the moment, but both of weekly chart support at 1.3485 and daily chart support at 1.3492 has been rejected with a double bottom pattern, looks like the pair is waiting for Bank of England’s meeting tomorrow. Anyway; buying the pair at the moment could be risky a bit as well as selling the pair above 1.3485 could also be risky a bit, a 4 – hour closing (daily is better) below 1.3485 will invalid the double bottom and pave the way to the 1.3430/1.3377 levels ahead of the 1.3347 levels. On the upside, resistance comes at the 1.3560 levels, a break will aim the 1.3600 levels, further upside resistance comes at the 1.3665 levels.

Key data events which may affect GBPUSD pair today:

The U.S will report on producer price inflation at 12:30 GMT.

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