Talking Points
- GBPUSD Trades at 4 Week Low
- Trading Under S4 Support
- Range Support Sits at 1.6863
GBPUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
After today’s NFP event, the GBPUSD remains one of the markets weakest currency pairs based on USDollar strength. Overnight, the GBPUSD was already trading at weekly low. Even with a worse than expected NFP print, the pair failed to reverse back inside of the trading range marked by S3 support at 1.6863. Currently price remains under S4 support at 1.6844. As the pair continues to move towards lower lows, this can allow breakout traders the opportunity to place new orders with the prevailing trend.
A return to ranging markets is always a consideration as the trading week comes to a close this Friday. Currently todays pivot range is denoted by S3 mentioned above, and the R3 pivot resting at 1.69001. A reversal in price, in between the mentioned pivots, would signal an end to the current breakout environment. At this point, traders should reconsider their trading bias based off of the change in market conditions.
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---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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Previous Market Setups:
FX Reversals: USDJPY Reaches Range Resistance
FX Reversals: Mondays EURUSD Range
FX Reversals: USDollar Breaks Resistance
