Trading Tips:The Sterling rallied with London opening, up to 1.4450 against the greenback, from where the pair is currently retreating, towards the 1.4400 region. Once again, the UK calendar remained empty, with dollar ́s weakness being the main market driver. With stocks rallying across the world, there’s little room for dollar gains later today, albeit the release of the US ADP report may gave the greenback a short lived boost if it beats expectations. Crude oil stockpiles may also affect the Pound, as another surprise rise may send the currency lower. In the meantime, the 4 hours chart shows that the technical indicators are beginning to look exhausted towards the upside in overbought territory, suggesting the downward corrective move may extend, particularly on a break below 1.4360, the immediate support. Nevertheless, the dominant trend is still bullish, and the market will probably prefer to buy the dips. Only below 1.4330, the 61.8% retracement of the latest bearish run, the downside potential will increase, exposing then the 1.4250 static support.
RECOMMENDATION :
BUY GBP/USD ABOVE 1.4450 TARGET 1.4470 1.4500 SL BELOW 1.442
SELL GBP/USD BELOW 1.4368 TARGET 1.4348 1.4318 SL ABOVE 1.4398
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