Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
GBP/USD Daily Bar Breakout

GBP/USD Daily Bar Breakout

Walker England, Forex Trading Instructor

Market Condition: GBP/USD Inside bar Breakout

Target 1: 1x Reference Bar Extension

Target 2: 2x Reference Bar Extension

Invalidation: Continued Consolidation

GBP/USD Daily Chart

(Created using Marketscope 2.0 Charts)

After advancing as much as 737 pips for the month of January, the GBP/USD has begun to consolidate on the daily chart. As seen in the chart above, this consolidation is taking the form of an inside bar. Traders looking for a breakout may use Friday’s daily candle as a reference for support and resistance. Currently resistance is found at 1.4362, while support is found below at 1.4204. In the event that price breaks either above resistance or below support, traders may consider using a 1-x extension of the 158-pip reference bar to identify potential price targets. This places initial bullish targets at 1.4520, and bearish targets near 1.4047.

If prices continue to trade “inside” and fail to breakout, it would suggest further consolidation is in store for the GBP/USD. In this scenario, any breakout entries would be at least temporarily suspended.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.