Bulls watching UK CPI Data Cable (GBPUSD) 130916

1. As per yesterday’s trade plan, GBPUSD went up as expected and Pound continued to show strength against the weaker dollar after Brainard’s speech last night.
2. I remain a bull on GBPUSD and am expecting some good results out of the UK today – of course that doesn’t mean I am just jumping into the market, I am going to look for buying opportunities as long as fundamental data supports my bias
3. Technically price came up off role reversal MM3 on daily, made a double bottom on H1 and has subsequently made a higher high.
4. At the time of writing this article, price has dropped from DM3 and is at WPP, where I am expecting bulls to buy.
5. An aggressive bull would look for confirmation on a lower time frame chart – which would be a higher high going long on the higher low at support
6. A conservative bull would look for a break of DM3 and then buy the role reversal
7. If bears start entering the market and we see price move down and break WPP, then I would look to the next level of support on H1 – the 38.2 fib.

Note:
a. Please read Kate’s post on Forex Major Currencies Outlook everyday so you are up to date with the latest news. You can follow Kate here
b. Please be aware of risk events for the day by using the Forex.Today calendar
c. Watch Wayne’s webinar daily at 13:30 SAST or catch the recording on the Forex.Today Youtube Channel

GBPUSD Daily

GBPUSD H4

GBPUSD H1

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