GBPUSD: Price Pushing Into Key Resistance With No Bearish Signs.

OANDA:GBPUSD   British Pound / U.S. Dollar
GBPUSD: Price is now pushing into the extreme zone which has a defined upper resistance boundary of 1.4423. Price is also sitting just above the 1.4345 high that was established back in January. The probability of a bearish reversal is high, BUT until there is confirmation, the bullish momentum can continue to drive price higher.

Keep in mind, if price is going to reject a resistance level , it usually happens fast. As long as price lingers in this area, or slowly grinds higher, that is a sign of strength. I do not buy highs, I look to sell them, but only under very specific conditions. If the market cannot produce the criteria that I am looking for when it comes to initiating a swing trade short, then I avoid completely.

Buying a breakout here is high risk in my opinion. If I am going to capitalize on the long side, I prefer to take risk at more attractive prices. In this case, I am watching the 1.4115 to 1.4054 area (.618 relative to recent bullish swing) which is a minor support. Otherwise my position is neutral which means I have no position.

Make sure to check out S.C. for updates, because if a swing trade short setup develops, that is where the details will be.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| | Cofounder (S.C.)

GBP/USD get high with no reason even with there data since 3 month and brexit issues. I believe it will drop sharply. Thank you sir for your analysis
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