STRONG WEEKLY OPEN FOR STERLING
The GBPUSD pair has opened the new trading with strong gains, taking advantage of a weaker U.S dollar and choosing to look past United Kingdom political risks.
In early Monday trading, the pair has moved to a four day price high, of 1.2754, breaking past the Friday trading high at 1.2744. At present the pair is trading slightly below the intraday high, but is managing to hold above former resistance, now turned support, at 1.2730.
GBPUSD is strongly bullish in the short and medium term, with the pair remaining a buy on any pullbacks, whilst clearly trading above the 1.2700 handle.
Critical intraday technical support for the GBPUSD pair comes from the H1 time frame 200 period moving average, at 1.2720, and the calculated weekly pivot point, slightly below at 1.2708.
To the upside, the daily time frame 20 period moving average offers strong resistance at 1.2762, with the former weekly high offering further support at 1.2814.
Above 1.2814, the 1.2840 level comes in focus, past 1.2840, the calculated monthly point offers strong weekly resistance at 1.2897.