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The GBPUSD hasn’t been the most exciting currency pair lately.
For nearly two months the pound has been consolidating against the U.S. dollar.
And last week’s 115 pip range was the pair’s narrowest in years.
However, if there’s one thing I know about consolidation and narrow ranges, it’s that big moves usually follow.
A view of the GBPUSD daily time frame illustrates where the next significant move might begin.
If we strip away some of the other levels, this wedge pattern becomes even more apparent.
Given the short-term uptrend so far in 2019, it could signal a move higher.
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But GBPUSD bulls still have work to do.
As of today’s session, the level buyers need to clear on a daily closing basis comes in at the 1.3120 area.
The “daily close” refers to the New York 5 pm EST close. These charts are required for trading price action.
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If they can get the job done, I see no reason why GBPUSD can’t challenge the year-to-date highs at 1.3350.
The alternate scenario involves a daily close below wedge support near 1.3000.
That would open the door to the next key support level at 1.2800.
That said, my base case right now is for a push higher eventually. But again, the GBPUSD needs to close above 1.3120 for that outlook to become a reality.
Until then this is a congested market that isn’t suitable for trading in my opinion.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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