GBPUSD Reversal Pauses at Resistance- Longs Favored Above 1.5170
- Sterling reversal coming into key near-term resistance
- Weekly opening range break keeps scalp bias on long-side
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- GBPUSD testing resistance confluence just below 1.53
- Key daily support 1.5083 / December median line (blue)
- Multiple daily RSI resistance triggers pending- breach would be constructive
- Resistance breach targets 1.5324, 1.5383/93
- Event Risk Ahead: US CPI, Industrial Production & University of Michigan on Friday
Notes:GBPUSD made a clean break of the weekly opening range last night shifting the scalp bias to the long-side while above the 1.5171/75 threshold. Key near-term resistance stands at the confluence of the upper median-line parallel (blue), the 38.2% retracement off the December 31st high and the 100% extension of the advance off the lows at 1.5236/56. Long scalps into this region are at risk with a topside breach clearing the way for further advances towards 1.54.
Bottom-line: looking for another high with our scalp bias weighted to the topside. A break below our bullish invalidation level at 1.5171/75 risks a re-test of the weekly opening range low & key support at 1.5080. Caution is warranted heading into the end of the week with key US inflation, production and sentiment data on Friday likely to fuel added volatility in USD based pairs.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
- USDJPY Threatens Opening Range- Sub 118 Targets In View
- Key Levels for USD Crosses, Gold Ahead of NFPs
- GBPCAD Scalps Target Major Support- Shorts at Risk Above 1.7850
- GBPNZD Opening Range in Focus Ahead of BoE- 1.9722 Key Support
---Written by Michael Boutros, Currency Strategist with DailyFX
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