GBP/USD Ranges ahead of US NFP Data
EUR/USD 30 Minute
(Created using Marketscope 2.0 Charts)
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The GBP/USD is trading today inside of a defined 55-pip range. Prices are currently turning lower after testing range resistance, which is found at the R3 Camarilla pivot at a price of 1.4403. So far price action has traversed today’s range once, and if market conditions continue traders may look for GBP/USD to again trade towards support. Range support is denoted in the graph above by the S3 pivot, which is located at a price of 1.4348.
While many traders are expecting breakouts to develop during tomorrows NFP (Non-Farm Payrolls) news event, today traders should also continue to monitor both the R4 and S4 pivot points for a higher high or lower low. A move above 1.4430 at today’s R4 pivot point would signal a bullish breakout. In this scenario, traders may extrapolate 1X today’s 55 pip trading range to find preliminary breakout targets near 1.4485. Alternatively, a bearish breakout for the day begin beneath the S4 pivot at 1.4321. After extrapolating 1X the range, this places initial bearish targets at 1.4266.
Find out the latest positioning totals with DailyFX’s sentiment page
SSI (Speculative Sentiment Index) for the GBP/USD current reads +1.23. When taken as a contrarian signal, this positive number may be interpreted as a bearish signal. If prices do begin to decline, traders should look for SSI to continue to advance towards positive extremes above +2.0. Alternatively, in the event of a bullish advance, traders should look for SSI to flip towards a negative extreme.
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