Key Technical Levels
The current declining trendline is limiting upside potential and provides traders with a target to enter and exit positions. The 20-Day SMA at 1.6599 is also a barrier for bullish sentiment. Downside risks remain capped by the rising trendline which we see by connecting the 11/3 and 11/20 lows.
Quantitative Metrics
The GBP/USD’s narrowing Bollinger band width and declining ATR adds to the pair’s attractiveness fro scalpers. However, with a width of 549 pips it remains one of the largest of the pairs listed below. Additionally, an average true range of 168 pips is in the upper echelon of the majors. Yet, the direction is clearly moving in the favor of scalpers and the low implied volatility of 9.68 reinforces the case for the pair as a target.
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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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