There hasn't been much movement in the market with it being summer etc. but with momentum starting to pick up again within the market, we have an outlook/potential setup on GBP/USD.
Sterling is currently within an ascending channel, but has been in consolidation between the 61.8% fib level and the daily/4H resistance level at around 1.57 (blue highlighted area) for around the past month or so. Given price is still above the key level of 1.55 and taking into consideration other factors our bias is still bullish on this pair. In order to go long, we would like to see a daily close above the 1.57 resistance level mentioned which could potentially lead us to the 1.593 level as our target 1. A break of that could then see price reaching our confluent area at 1.613 which is our target overall as shown by the chart.
In order for us to go short, we would need to see a break and close below 1.55 and also the ascending TL, which would then lead us to believe price could come all the way back down to 1.5.
All comments appreciated. Happy Trading.
Sterling is currently within an ascending channel, but has been in consolidation between the 61.8% fib level and the daily/4H resistance level at around 1.57 (blue highlighted area) for around the past month or so. Given price is still above the key level of 1.55 and taking into consideration other factors our bias is still bullish on this pair. In order to go long, we would like to see a daily close above the 1.57 resistance level mentioned which could potentially lead us to the 1.593 level as our target 1. A break of that could then see price reaching our confluent area at 1.613 which is our target overall as shown by the chart.
In order for us to go short, we would need to see a break and close below 1.55 and also the ascending TL, which would then lead us to believe price could come all the way back down to 1.5.
All comments appreciated. Happy Trading.