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.
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.
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tnks
You’re welcome.
Any thoughts on a break below the ascending trendline extending from Dec 12 low and connecting to Feb 14 low? Might that signal a move lower, or should we avoid that “break” due to its close proximity to horizontal support at 1.2960/1.3?
For me, 1.3000 is the one to watch.
thanks justin
You’re welcome.
Thanks for the help
Anytime!
I’m still a beginner. Just wanted to ask if by the look of things will the UK Employment lead to a retest of the 1.3000 level and introduce buyers?
Nobody knows what will happen next in the market. Focus on what’s in front of you instead.
I’m a 100% technical trader, so I don’t pay attention to fundamentals.
Thanks for the analysis. Need your comment on Gbpjpy, it seems the pair is also behaving like Gbpusd.
I’ll comment on GBPJPY if I see something worthwhile.
Thanks
You’re welcome, Ashley.