Key Technical Levels
We are seeing consolidation ahead of the U.S. event risk which could be duplicated as we approach the BoE rate decision. On a daily time frame we see that the 20-Day SMA has become solid support which traders can target as a level for potential consolidation. Conversely, the 10/23 high of 1.6692 may serve as resistance and could generate similar price action.
Quantitative Metrics
The GBP/USD has seen its ATR hold steady in the 170-190 pip range for the past two months making the pair attractive for scalpers. Additionally, the pair has the third lowest implied volatility of the pairs listed below at 14.35. However, a Bollinger band width of 1050 pips is a red flag and must be taken into consideration.
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To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com
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