I mentioned over the weekend that GBPUSD was coming to the final stages of a consolidation phase that began the first week of July. And after four weeks of hibernation, it looks as though the pair may be ready to wake up.
The breakout opportunity here can be played in one of two ways. The first would be to wait for a daily close above wedge resistance shown below.
However if we move down to the 4 hour chart, we can also see that this same resistance level has been respected on a 4 hour closing basis as well. This means that we can also play a breakout here on the 4 hour chart. Just remember that a daily close will always trump a 4 hour close when confirming a breakout.
Keep in mind that the 1.5680 handle looms just 60 pips above current levels. This makes it important to either cover your risk as soon as possible or wait for a break of this area before considering a buying opportunity.
Summary: Watch for bullish price action while holding above former wedge resistance on a 4 hour basis. Alternately, traders can wait for a daily close above the level before further consideration. Key resistance comes in at 1.5680, 1.5814 and 1.5930.