GBP/USD

Testing key levels

Last week, we saw GBPUSD just below a multiple support/resistance area at 1.9960 below the psychologically significant 2.00 level.

Positioning had failed to yield a reliable candlestick signal and we remained flat. Price action would rally to surpass resistance as the week progressed but a substantial rally failed to materialize. Rather trading has remained choppy around the 2.00 mark.

Current positioning sees GBPUSD testing below the aforementioned multiple support/resistance level. We have also identified what appears to be a Rising Wedge chart formation. This is generally bearish, signaling bullish sentiment is losing steam and favoring a break to the downside. That said, risk-reward parameters are not ideal for an entry at current levels. We will continue to monitor price action in the days ahead to see if an opening presents itself.


GBP/USD Strategy