At the opening of the market this week we were originally expecting further downside on GBPUSD
if the 1.29150 Friday lows got taken out. Since the market opening however we have formed a clear double-bottom, almost to the pip, at the 1.2915 level. A strong area of support has now formed in this zone between 1.2915 to 1.294 over the last week or so. With today's US session sending price action over intra-day highs at 1.30050 and holding ground, it is likely that we may see higher pricing. FED Janet Yellen is giving her semi-annual testimony tomorrow and what she has to say may move the USD a lot so we will be waiting to see how this market looks after her testimony. If after her testimony price has broken out of this resistance bearing trend line
and is holding above 1.30050 as support, we may consider scaling in to a long position with stops below 1.29150. Initial upside targets rest at 1.312, so we will only consider entering if it is still worth while after Yellen speaks. We will monitor price action and update this post if we take action.
Good luck to you all!