The GBPUSD has opened the US trading session moving sideways inside of a 70 pip defined range. Today’s range starts at resistance found at the R3 pivot point, at a price of 1.5634. Range support is found below at the S3 pivot, at a price of 1.5564. It should be noted that price has already traversed today’s trading range twice. As price is currently trading under resistance, traders will look for prices to move back towards values of support if current market conditions persist.
In the event that price breaks from its current range, traders may begin looking for a breakout at either the R4 or S4 pivot. A move beyond the R4 pivot at 1.5669 would be considered a bullish breakout, as prices move back in the direction of the daily trend. Also a bullish breakout above this point would suggest that the market is poised to close higher for the sixth time out of the previous seven trading days. Alternatively, a breakout below the S4 pivot at 1.5528, would be considered a bearish reversal. A move to this point would be contra to the primary trend leaving traders to adjust their strategy accordingly.
The GBPUSD finished Tuesdays trading just above range resistance. Price action this morning has broken above today's new R4 Camarilla pivot at 1.5707 on better than expected UK jobless claims data.