• The GBP/USD retraces to resistance
• Range resistance is found at a price of 1.5136
• breakouts are signaled below 1.5063
The GBP/USD has retraced against its primary trend this morning back to a point of daily resistance. Currently prices are testing the R3 which is found at a price of 1.5136. If resistance holds, traders may take this pullback as an opportunity to join the prevailing trend. In the event that this morning’s momentum reverses, traders may look to target values of support including the S3 found at a price of 1.5087. If prices do approach the S3 , traders should continue to monitor price action. A bounce from support would suggest continued consolidation, while a decline lower would open up the GBP/USD to new lower lows.
Today’s S4 is found at 1.5063. A move below this value would signal the third breakout in the last four trading periods. This would be a strong signal for a continued decline for the pair, and traders would begin looking for the GBP/USD to challenge the weekly lows at 1.5029. Traders using a 1x extension of the previously mentioned range for initial breakout targets, can also project a decline down to a price of 1.5014. Alternatively, breakouts should be considered above 1.5160. A move to this point would be the first breakout in eight trading sessions, and would at least temporarily suggest the end to the current trend.