GBPUSD Day Trade

May the 18th, 2021

GBPUSD is making a break higher above 1.4160, this could lead to an imminent attempt at 1.4200/20 the next target.

It is understandable that the GBP is strong as the UK economy is opening, economic activity and consumer spending is going to rise quickly.

Today we will see the release of UK employment numbers, and average earnings in early London trading. It is possible we could see good numbers. which will boost the GBP. Any disappointment will probably be seen as just a temporary set back. Such is the bullish sentiment for the GBP.

GBPUSD Price Analysis

Although a break of the previous high is a positive, we would like to see a slight extension towards 1.4180/90, then we would be more confident to place a buy limit in the 1.4160/65 area. Looking for a day trade target of 1.4220

If however, the price slips back below 1.4150, I would be thinking that this is a false break and look at sell GBPUSD for a drop to 1.4100/1.4090 followed by more consolidation range trade.

Analysis Pre London opening from http://www.eightdragonscapital.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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