Shrug off CBI reported sales plunge
The CBI reported sales plunged to 1 from 39 (estimate 35) in February today. The index can be volatile though. The market does not seem to care as the price has rebounded to new highs for the day and is currently breaking above technical resistance in early NY trading.
Looking at the hourly chart below, the price is breaking above trend line and 100 hour MA resistance - triggering stops in the process. This is now support for the pair (at 1.5398/1.5400). The next targets come in at 1.5419 (tend line extending from Feb 3rd low and Feb 12 low) , 1.5426 (high from Friday PM) and 1.5432 (Friday high). There should be sellers in this area on the first test.
On the daily chart, the GBPUSD has seen more support since breaking above trend line resistance on the daily chart earlier in the month. The move to the downside today did find support near the 50 % of the move up from the Feb 10th low at the 1.5338 level (see hourly chart above). It was also near swing lows on the hourly chart from last weeks trading. There was a break below that level on Tuesday but it was quickly reversed.
For my weekend take on the currency pair (VIDEO), CLICK here.
