FX Reversals: GBPUSD Breaks Support on News
- GBPUSD Breaks Support on News
- S4 Support Sits at 1.5855
- Today’s Breakout Nullified Above 1.5885
GBPUSDF 30Minute Chart
(Created using FXCM’s Marketscope 2.0 charts)
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The GBPUSD opened lower this morning after the Bank of England (BOE) issued its inflation report. The BOE noted that it was rolling back its economic forecasts for 2015, and the GBPUSD quickly dove off of resistance and under values of key support. Price is now trading under the S4 camarilla pivot, signaling that the pair is breaking out towards a daily lower low. This price movement has allowed reversal traders to initiate new positions back in the direction of the GBPUSDs primary trend.
Even though the GBPUSD has dropped as much as 129 pips this morning, if momentum stalls traders should watch for a return of prices to the pairs defined trading range. Currently range resistance sits at the R3 pivot at a price of 1.5945. Range support, which was broken earlier sits at a price of 1.5885 completing todays 60 pip range. In the event that trading again reaches these values, the previously mentioned breakout would be nullified signaling at least a temporary reversal in the trend.
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---Written by Walker England, Trading Instructor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.