GBP/USD
Strategy: Flat
Earlier this week, we booked profits on our short GBPUSD position as prices took out resistance at the top of a falling channel established from the swing top in November and overcame the 1.6171-1.6249 congestion region. Taking this opportunity to step back and re-evaluate longer term positioning on the weekly chart, we see that prices have been locked in well-defined range between 1.5811 and 1.6749 since May 2009. The most recent downswing found ended as prices put in a Bullish Engulfing at the range bottom and moved higher to test above the channel’s middle axis at 1.6208, with a weekly close above this level opening the door for a move back up to the range top.
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