GBP/USD Rally Presses On Resistance
- GBP/USD Trades to Weekly Highs After Breaking Above 1.3200
- Short Term GBP/USD Resistance is Found at 1.3263
- If you are looking for GBP/USD trading Ideas, check out our Trading Guides.
The GBP/USD is trading to new weekly highs this morning, after breaking out above 1.3200. Currently the pair is moving on its next value of resistance at 1.3263. This resistance line is found at a 78.6% retracement level, which is found measuring the distance from the Current August 2016 high at 1.3371 and the low at 1.2865. Traders should continue to monitor this point, because a further breakout opens the GBP/USD to trade towards new monthly highs. Alternatively, if the Cable is rejected below resistance it suggests that the current bull move in price is simply a retracement in a broader downtrend.
GBP/USD Daily Chart with Fibonacci Retracement
(Created by Walker England)
In the 10 minute graph below, the GBP/USD can be seen trading off of the current daily high at 1.3249. The Grid Sight Index (GSI) is currently highlighting a short term uptrend developing, with the GBP/USD bouncing from its daily low at 1.3218. After reviewing 38,847,112 pricing points, GSI has indicated that price action has advanced 20 pips or more in 60% of the 20 matching historical events. This places this morning first historical analysis point at 1.3161. A move to this level would be considered significant as it would place the GBP/USD 1 pip above the previously mentioned value of Fibonacci Resistance.
It should be noted that today’s first bearish distribution is found at 1.3222. GSI is reporting that prices declined by 22 pips or more in 55% of the matching historical events. A move through this value would suggest that the current bullish momentum seen on the Cable is subsiding. In this scenario, traders may begin to target values beneath the daily low at 1.3218.
Want to learn more about GSI? Get started learning about the Index HERE.
The ratio of long to short positions for the GBP/USD stands at -1.08. This SSI (speculative sentiment index) reading shows that 52% of positioning is currently net short. This is a switch from yesterday’s reading which was reported at +1.14. In the event that prices continue higher, this switch in sentiment may suggest a change in the current GBP/USD trend. Alternatively if prices retrace lower, traders may reasonably expect SSI reading to flip back towards positive readings.
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