GBPUSD Update: In Consolidation, but Watch 1.2432!
This is a technical analysis to note key institutional levels, not a trade recommendation.
Jan 19th low at 1.2254 brought in dip buyers, though the consolidation continues.
As price drifts to the upside the likelihood of a break out increases.
Watch key institutional resistance at 1.2432 for a break out.
A sustained break above the figure will clear upside and put sights up to the 1.25090 institutional resistance level.
Only a swift move below the Jan 19th low at 1.2254 will take pressure off the upside.
FAQ
What is an institutional level? Put ten traders in a room and instruct them to note key support and resistance levels. No doubt some of them will locate the proper levels, but there will surely be discrepancies among them because finding key support and resistance levels is subjective. Large financial institutions like big banks and hedge funds employ technical analysts to avoid these uncertainties and to justify what specific levels will attract institutional money.
Jan 19th low at 1.2254 brought in dip buyers, though the consolidation continues.
As price drifts to the upside the likelihood of a break out increases.
Watch key institutional resistance at 1.2432 for a break out.
A sustained break above the figure will clear upside and put sights up to the 1.25090 institutional resistance level.
Only a swift move below the Jan 19th low at 1.2254 will take pressure off the upside.
FAQ
What is an institutional level? Put ten traders in a room and instruct them to note key support and resistance levels. No doubt some of them will locate the proper levels, but there will surely be discrepancies among them because finding key support and resistance levels is subjective. Large financial institutions like big banks and hedge funds employ technical analysts to avoid these uncertainties and to justify what specific levels will attract institutional money.
