Talking Points
- GBPUSD Tests Resistance on News
- Range Resistance Begins at 1.6646
- S3 Support is at 1.6582
GBPUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The GBPUSD attempted to break higher this morning on the release of the Bank of England meeting minutes. However even with the news of two board members supporting rate hikes, price failed to breakout and trade beyond the R4 camarilla pivot at 1.6680. At the current time, price has reversed back inside of the designated camarilla pivot range. Range resistance for the GBPUSD currently sits at 1.6646. Support can be seen above at S3 pivot at 1.6582. The distance between these two points have created a 64 pip trading range for today’s session.
Traders should be aware that a move toward support would be a move back in the direction of the pairs prevailing daily trend. Conversely if price breaks resistance over R4 at 1.6680, it could signal a broader reversal for the pair on a move to higher highs. In either scenario, a breakout would signal a change in market conditions, giving traders an opportunity to enter the market with fresh price momentum.
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---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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Previous Market Setups:
FX Reversals: USDCAD Morning Breakout Update
FX Reversals: USDCAD Tests Support
FX Reversals: EURGBP Breaks Final Support
