Ian Coleman is looking at GBPUSD which, to a certain extent, is reflecting the USD Index. Ian says "After Friday’s strong gains there was little net movement in the index yesterday with a range of just 13 tics. This lack of clear direction has continued overnight and we are holding against bespoke resistance of 79.79. Although there is no clear sign of change of trend, the one hour chart is close to an exhaustion count, so there is ample room for a temporary move lower towards our support at 79.75 and 79.64 (current price 79.96)."

Based on the USD Index, Ian Coleman's call today on GBPUSD is to Sell at 1.6928 with a 35 pip stop: "Cable posted net gains yesterday but sellers did emerge close to 1.6900. We are assessed as being in the C leg of an AB=CD formation (corrective). There are 3 reasons why the rally should stall close to 1.6930."

The measured move target for the AB=CD is 1.6930

2. The daily channel top is located at 1.6936
3. The 61.8% pullback level from 1.6994 to 1.6832 is located at 1.6931

Profit targets: 1.6885 and 1.6835 (channel base).

Resistance levels: 1.6912, 1.6930 and 1.6959

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