GBP/USD approaching sexy resistance area on H4...
Solid macroeconomic data out of the UK on Wednesday helped the GBP/USD reclaim the 1.32 handle in strong fashion. Though price action found difficulty extending these gains at nearby H4 resistance drawn from 1.3213, the pair eventually overpowered the obstacle amid thin US trade and clocked a fresh weekly high of 1.3249.
Recent movement has placed the H4 resistance area at 1.3274-1.3260 in the limelight. In the event H4 price continues to punch higher today, it’ll also complete an AB=CD approach (see black arrows). Unfortunately, though, the base boasts limited connection to the higher timeframes. Daily flow displays room to probe as high as resistance coming in at 1.3314, as well as weekly price eyeing supply as far north as 1.3618-1.3460.
Areas of consideration:
Though higher-timeframe flows suggest a push higher may be on the cards, the H4 resistance zone mentioned above at 1.3274-1.3260 will still likely produce a bounce back towards 1.3213 which should now act as support. To give yourself some room here, placing stops around the 1.3284 mark could be an idea (24-pip stop). This equates to two times one’s risk, should you target the H4 support highlighted above at 1.3213 (47 pips). As a result, risk/reward argues this setup is a worthwhile consideration.
Today’s data points: BoE Gov. Carney speaks; US ADP non-farm employment change; US unemployment claims; US ISM non-manufacturing PMI; FOMC meeting minutes.
Recent movement has placed the H4 resistance area at 1.3274-1.3260 in the limelight. In the event H4 price continues to punch higher today, it’ll also complete an AB=CD approach (see black arrows). Unfortunately, though, the base boasts limited connection to the higher timeframes. Daily flow displays room to probe as high as resistance coming in at 1.3314, as well as weekly price eyeing supply as far north as 1.3618-1.3460.
Areas of consideration:
Though higher-timeframe flows suggest a push higher may be on the cards, the H4 resistance zone mentioned above at 1.3274-1.3260 will still likely produce a bounce back towards 1.3213 which should now act as support. To give yourself some room here, placing stops around the 1.3284 mark could be an idea (24-pip stop). This equates to two times one’s risk, should you target the H4 support highlighted above at 1.3213 (47 pips). As a result, risk/reward argues this setup is a worthwhile consideration.
Today’s data points: BoE Gov. Carney speaks; US ADP non-farm employment change; US unemployment claims; US ISM non-manufacturing PMI; FOMC meeting minutes.
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