GBP/USD Ranges Ahead of FOMC Minutes
- GBP/USD consolidates ahead of U.S. FOMC minutes
- Range support is found at 1.5188.
- Bullish breakouts begin over 1.5257
(Created using TradingView Charts)
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The GBP/USD continues to trade inside of a 56 pip trading range this morning, between key values of support and resistance. The pair has already traversed the range once, after bouncing off the S3 Camarilla pivot point found at 1.5187 in early trading. This range bound activity is not surprising as the FOMC meeting minutes for October are set to be released later this afternoon at 19:00 GMT. Many traders are waiting for this event to determine the future direction of the U.S. Dollar. If the news substantially increases market volatility, it may potentially cause the pair to breakout. However, in the meantime traders may continue to monitor the range for potential trading opportunities.
Traders should also watch today’s R4 and S4 pivot points in the event a breakout occurs on the previously mentioned news. In the event that the GBP/USD trades above the R4 Pivot point at a price of 1.5257, this would establish a new weekly high for the pair. A move to this point would be the first bullish breakout in five trading periods and traders looking for a 1-x extension of the range may consider initial targets near 1.5313. Alternatively, in the event of a bearish breakout, traders will look for prices to decline below the S4 pivot point at 1.5164. In this scenario, a 1-x extension of the range places the GBP/USD at weekly lows at a price of 1.5108.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.