After this morning’s Employment cost data, the USDollar has sold off against the Forex majors. This includes the GBPUSD, which is now attempting to move to new weekly highs. Today’s breakout is marked by price moving beyond the R4 Camarilla pivot, displayed below, at a price of 1.5640. With the creation of a new higher high, traders can use this bullish bias on the pair as well as look to establish new buy based orders.
If price moves back below 1.5640, this opens the GBPUSD up to a possible false breakout. In this scenario, traders will watch for price to drop back inside of today’s 44 pip range. It should be noted that range resistance begins at the R3 pivot point, at a price of 1.5618. As well, range support is found at a price of 1.5574. In this scenario, today’s bullish momentum would be considered suspended at least temporarily, and traders should adjust their positioning accordingly.
If price moves back below 1.5640, this opens the GBPUSD up to a possible false breakout. In this scenario, traders will watch for price to drop back inside of today’s 44 pip range. It should be noted that range resistance begins at the R3 pivot point, at a price of 1.5618. As well, range support is found at a price of 1.5574. In this scenario, today’s bullish momentum would be considered suspended at least temporarily, and traders should adjust their positioning accordingly.
Life comes down to a few moments, this is one of them.