GBP/USD Tests Resistance on Disappointing U.S. Data
- U.S. Retail Sales Figures Disappoint at 0.1%
- The GBP/USD tests resistance at 1.5250
- Bullish breakouts begin over 1.5270
(Created using TradingView Charts)
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The GBPUSD, has held its 40 pip range this morning after a disappointing set of Advanced Retail Sales figures being released this morning. Expectations for the event were set at 0.3%, and released at an actual 0.1% for the month of October. This event quickly caused a selloff of the US Dollar and pushed the GBP/USD to today’s range resistance which is found at a price of 1.5250. So far the pair has been unable to breakout higher at this point, but if prices continue to rally traders will begin looking for a bullish breakout above the R4 pivot point which is found at a price of 1.5270. Traders looking for a breakout can begin targeting prices near 1.5310 using a 1x extension of the previously mentioned trading range.
If range bound conditions continue, it would represent the 4th day of consolidation for the GBP/USD out of five trading days this week. If these current market conditions continue, traders would expect prices to remains supported above the S3 pivot point, which represents range support at a price of 1.5210. Alternatively, in the event that support falls, traders may begin to look for a bearish breakout below the S4 pivot point at 1.5190. A move to this value would be significant as it would suggest the end of the current range bound conditions, and allow traders to begin targeting a lower low for the first time this week.
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