Talking Points
- GBPUSD Breaks Support on News
- S4 Support Sits at 1.5855
- Today’s Breakout Nullified Above 1.5885
GBPUSDF 30Minute Chart
(Created using FXCM’s Marketscope 2.0 charts)
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The GBPUSD opened lower this morning after the Bank of England (BOE) issued its inflation report. The BOE noted that it was rolling back its economic forecasts for 2015, and the GBPUSD quickly dove off of resistance and under values of key support. Price is now trading under the S4 camarilla pivot, signaling that the pair is breaking out towards a daily lower low. This price movement has allowed reversal traders to initiate new positions back in the direction of the GBPUSDs primary trend.
Even though the GBPUSD has dropped as much as 129 pips this morning, if momentum stalls traders should watch for a return of prices to the pairs defined trading range. Currently range resistance sits at the R3 pivot at a price of 1.5945. Range support, which was broken earlier sits at a price of 1.5885 completing todays 60 pip range. In the event that trading again reaches these values, the previously mentioned breakout would be nullified signaling at least a temporary reversal in the trend.
Are you new to trading with pivot points? To become more familiar with Camarill Pivots and how to use them for day trading FX Reversals, check out the suggested reading links below. This way you can continue your trading education, while working towards actively incorporating pivot points into your selected day
trading strategy.
Suggested Reading:
Trading Intraday Market Reversals
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---Written by Walker England, Trading Instructor
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