Key Technical Levels
Solid support at 1.5282-50.0% Fibo of 1.3508-1.7051 has slowed the bearish GBP/USD trend. The upcoming event risk strengthens the case that the support level will hold which decreases downside risks for the pair. Given that the current trend is lower upside potential is limited increasing the attractiveness of GBP/USD as a scalping target. The current short-term range has laid out solid entry and exit levels at 1.5450/70 and 1.5400.
Quantitative Metrics
A wide Bollinger band width of 887 pips is a product of the extended bearish trend and a concern for scalpers. The one-way price action makes it difficult to execute short-term strategies making the pair more attractive for a longer-term position. Additionally, an ATR of 154 pips is a considerably amount of daily volatility for traders looking to capture small profits.
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