GBP/USD –Top of Channel in Play, BTD Approach Still Favored
GBP/USD pushed to a new cycle high yesterday, bringing into play the upper parallel (~13900) of the channel it has been carving out since October. Resistance is in the direction of the trend, so it isn’t viewed as major but enough to induce a pullback. Given the way Cable has been trading, the best move may be for would-be longs to wait until a pullback develops; 13750-ish, around the Jan high may see buyers step back in. Generally speaking, staying bullish but the see-saw nature of the rally suggests buying dips over chasing momentum.
GBP/USD Daily Chart (top of channel coming into play)
Resources for Forex Traders
Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.