gbp-usd

The market has been well confined to a prominent range that has defined price action for the past several months. As such, any rallies towards 1.7000 should be used as a formidable opportunity to build on short positions, with only a break and close back above 1.7045 to ultimately negate outlook.

GBP/USD – The market has been well confined to a prominent range that has defined price action for the past several months. As such, any rallies towards 1.7000 should be used as a formidable opportunity to build on short positions, with only a break and close back above 1.7045 to ultimately negate outlook. Next support comes in by 1.6460, with a break to accelerate declines towards more significant support at 1.6250. For now, look for any rallies to be well capped on a close basis below 1.6800. Our short position from earlier in the week was stopped at break-even and we will look to re-sell further up on Wednesday if given the chance. Our entry point for the trade coincides with the 78.6% fib retracement off of the recent 1.6880-1.6460 move. STRATEGY: SELL @1.6785 FOR AN OPEN OBJECTIVE; STOP 1.6920. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON WEDNESDAY.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you will be added to the "distribution" list.

If you wish to discus this topic or any other feel free to visit our Forum page

DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.

• free demo account
• forex courses
• open an account
• real time news
• free webinars