Daily Timeframe: The GBP/USD appears to be going nowhere in a hurry according to the . Since the 08/12/14, price has been sandwiched between the weekly swap level mentioned above at 1.57166, and a daily demand area seen at 1.54260-1.55378 (located relatively deep within the aforementioned weekly demand area). Let’s take a look on the 4hr timeframe to see what we can find.
4hr Timeframe: Since the 14/11/14, this pair has been trading within a down trending channel (1.56150/1.58247). A beautiful reaction was recently seen from the 4hr demand area at 1.55402-1.55627 (located just above the aforementioned daily demand area), which fuelled a break and retest of 1.56. We unfortunately missed this buying opportunity.
In our opinion, we have no concrete higher-timeframe direction at this point in time. And as a result all trades taken on this pair will require confirmation from the lower timeframes, and targets will be kept within reaching distance.
The only places we’d consider looking for short-term trades today would be around the 1.57 (tentative sell orders are seen just below at 1.56950) level, and at an average-looking 4hr supply area seen just above at 1.57849-1.57528 (tentative sell orders are seen just below at 1.57495). This area is particularly interesting since it not only has trendline confluence seen on the 4hr timeframe (see red circle); it is also located just above the weekly swap level mentioned above at 1.57166.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1.56950 (Predicative stop-loss orders seen at: dependent on where one confirms the level) 1.57495 (Predicative stop-loss orders seen at: 1.57892).