GBP/USD Trades at Resistance Ahead of News
- GBP/USD Trades off Channel Resistance at 1.3152
- Consumer Confidence Figures are Expected at 95.5
- If you are looking for more trading ideas for the GBP/USD check out our Trading Guides
The GBP/USD is trading in a short term price channel ahead of today’s U.S Consumer Confidence release. Expectations for the event are set at 95.5, and depending on the outcome the GBP/USD may continue to channel lower or breakout and begin a fresh trend. Key technical points to watch on the Cable include the previous channel high at 1.3152, and this morning’s swing low at 1.3055.
GBP/USD, 30 Minute Chart
(Created by Walker England)
In the 5 minute graph below, we can see the GBP/USD trading off of channel resistance. The Grid Sight Index has identified this as a short term downtrend with a series of new lower lows over the last hour of trading. After considering 87.491.129 pricing points, GSI has also indicated that price action has declined a minimum of 12 pips in 55% of the 295 matching historical events. A move through the first historical distribution line at 1.3111 would be significant as it would signal momentum turning lower inside of the previously identified pricing channel.
Alternatively, traders may look for a larger retracement or breakout in price if the GBP/USD turns back towards channel resistance. The Grid Sight Index found prices advanced 25 pips in just 8% of the reviewed historical matches. A move through the first bullish distribution, found at 1.3148, would open the pair for further advances in price as the pair moves through resistance.
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GBP/USD 5 Minute GSI Chart
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.