GBP/USD Trades Sideways After Yesterday's 229 Pip Spike
- The GBP/USD trades in a 126 Pip range after Tuesday’s 229 pip spike
- Bullish breakouts begin over 1.4668
- GBP/USD sentiment remains flat as price range
The GBP/USD is consolidating this morning, after spiking up as much as 229 pips in yesterday’s trading. Today’s range measures 126 pips and begins at the R3 pivot which is found at a price of 1.4604 Currently prices are moving off of resistance, which opens up the GBP/USD to move back towards values of support. The S3 pivot comprises the bottom of today’s range and is found at 1.4478. If prices market conditions range for the remainder of the session, traders may continue to look for trading opportunities between these values.
Looking for additional trade ideas for the GBP/USD? Check out our Trading Guide
GBP/USD 30 Minute Chart
(Created using Marketscope 2.0 Charts)
If the GBP/USD fails to hold this range for the remainder of the session, traders may begin to look for breakouts either above the R4 pivot or below the S4 pivot. Today’s R4 pivot is located at 1.4668. A move above this resistance point would be significant, as the GBP/USD would then be trading at new weekly high. Initial bullish breakout targets may be found near 1.4794, which has been determined by extrapolating 1X today’s daily range. Bearish breakouts for the GBP/USD begin below 1.4416. This shift in momentum would open the pair to further declines, with initial targets being found near 1.4290.
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Current sentiment for the GBP/USD remains flat, despite the market’s recent volatility. SSI (speculative sentiment index) is reading at +1.13 with 53% of positioning net long. With positioning virtually split between long and short positioning, this may signal a continuation of the current range bound market conditions. If the GBP/USD does move to a new high, traders should watch for SSI to flip net negative. Alternatively, it the pair breaks lower, SSI may increase to an extreme positive total.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.