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scalping report
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- Mar, 19 EUR/GBP’s Developing Range Presents Scalping Opportunity
- Mar, 18 GBP/USD Channel Presents Scalping Opportunity
- Mar, 17 EUR/JPY Becomes Scalping Target with Technical Convergence
- Mar, 15 USD/CHF Test of Major Support Present’s Scalping Opportunity
- Mar, 11 USD/JPY’s Converging SMA’s Generating Ideal Scalping Environment
- Mar, 10 USD/CAD Channel Presents Scalping Opportunity
- Mar, 09 NZD/USD Channel Presents Scalping Opportunity
- Mar, 08 EUR/JPY Consolidation Presents Scalping Opportunity
- Mar, 04 USD/JPY Could Present Scalping Opportunity Ahead Of Non-Farm Payrolls
- Mar, 03 A Channel Bound AUD/USD Creates Scalping Opportunity
- Mar, 02 EUR/USD Becomes Scalping Target Ahead of ECB Decision
- Mar, 01 GBP/USD Test of Support Creates Scalping Target
- Feb, 26 A Developing Wedge Makes AUD/USD A Scalping Target
- Feb, 25 USD/JPY’s Test Of Major Support Could Present Scalping Opportunity
- Feb, 24 GBP/USD Consolidation Presents Scalping Opportunity
- Feb, 23 EUR/USD Present Scalping Opportunity Post German IFO Volatility
- Feb, 22 A Consolidating EUR/JPY Provides Scalping Opportunity
- Feb, 12 GBP/JPY’s Rising Trend Channel Is Ideal Scalping Environment
- Feb, 11 AUD/USD’s Test of Resistance Presents Scalping Opportunity
- Feb, 10 EUR/JPY’s Test of Support Presents Scalping Opportunity
The British Pound tumbled following the BoE quarterly inflation report which showed that prices remained subdued. Governor King following the release of the report left the door open for additional quantitative easing which help accelerate losses. The pair has fallen to support levels which is developing a period of consolidation that will provide a profit opportunity for high frequency traders. However, we are seeing broader dollar support which could lead further bearish sentiment.
Key Technical Levels
The GBP/USD is finding trendline support connecting the 10/13 and 11/3 lows which has stemmed losses and is generating a period of consolidation. The 20-Day SMA lies just below at 1.6495 which will limit downside risks and provide scalpers with an additional target.
Quantitative Metrics
A narrowing Bollinger band is a sign that price action for the GBP/USD has started to become concentrated. Indeed, before its recent breakout we swathe pair trade in a 300 pip range. However, at 558 pips it continues to hold the second largest width of the pairs listed below. Furthermore, over that period there were several days of large price swings which has kept the pair’s ATR at an elevated level. The daily range of 195 pips presents a risk for scalpers and detracts from the pairs as a target for scalpers.
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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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