GBPUSD Rangebound After Big Moves

faithmight

After staging a rally for 9 consecutive trading days, $GBPUSD became rangebound rather than stage a correction as many traders, including myself, had called for since the rally became overextended 4-5 trading sessions ago.

GBPUSD hourly chart August 4 2010

The $GBPUSD has forged a well defined range with 1.5960 establishing itself as the top of the range and 1.5880 at the bottom of the range. The 1.5960 top is also the 61.8% Fibonacci level on the weekly chart of the down move from 1.7040 to 1.4228.

Bank of England tomorrow and NFP on Friday should provide a breakout in either direction. To the upside, if 1.5960 is broken the big target for bulls will be the major whole number and psychological level at 1.6000. If 1.5880 is broken to the downside, the ultimate target is 1.5750 with 1.5840 as a possible area of support on the 4h chart. Trade what you see!


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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