The GBP/USD Attempts its 2nd Daily Bullish Breakout
- The GBP/USD Attempts 2nd Daily Breakout
- Bullish Breakouts Begin Over 1.4377
- SSI Reads Positive at +1.21
(Created using Marketscope 2.0 Charts)
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The GBP/USD is attempting to break higher for the second consecutive day, on today’s Bank of England rate decision. Key rates were kept at .50% as expected, causing the Pound to rally against the Dollar. The US Dollar is still selling off against most major currencies, from dovish statements issued from the US Fed Chair Janet Yellens press conference yesterday. As the GBP/USD continues to rally, traders may look to support and resistance for potential trading opportunities.
Price for the GBPUSD is currently trading near today’s R4 Camarilla pivot point, which is found at a price of 1.4377. If prices continue to advance, traders may look for opportunities to trade a breakout on the creation of a higher high. It should be noted that today’s trading range measures 122 pips. When extrapolating 1X of the range to a breakout, this places preliminary targets for a bullish breakout near 1.4499.
In the event of a price reversal, traders should watch for prices to fall back inside of the range displayed in the graph above. Today’s range begins at the R3 pivot point, which is found at a price of 1.4317. If the GBP/USD declines below this value it opens prices to test values of support, including the S3 pivot point at 1.4195.
Traders tracking sentiment should note that SSI (Speculative Sentiment Index) is currently reading at +1.21 for the pair. Therefore, value is up slightly from last week’s reading of 1.16. While this value is not extreme, traders looking for confirmation of a bullish breakout should reasonably expect SSI to flip negative on a continued price advance. Conversely, if the current GBP/USD rally were short lived, traders would expect sentiment to increase as prices reverse downward.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.