Daily Price Action
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GBPUSD Fails at Wedge Support

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GBPUSD has been a fairly straightforward pair to trade since mid April. The rising wedge pattern that has been carved out since that time has given us several profitable setups over the past month.

As I mentioned in the weekly forecast, “the real potential for a trade would likely come on a break of either channel support or trend line resistance from February”.

During yesterday’s session the pound gave us that break with a daily close 90 pips below the key support level. This break gives us an opportunity to watch for sell signals on a retest of the 1.5500 area as new resistance.

Do keep in mind that the annual budget release for the UK is due out tomorrow at 7:30am EST. As such it may be a good idea to wait until that release is behind us before looking for an entry.

Summary: Watch for bearish price action on a retest of the 1.5500 area as new resistance. Key support comes in at 1.5355, 1.5195 and 1.4980.

GBPUSD rising wedge broken on the daily time frame

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