GBPUSD: Keep an Eye on This 500-Pip Opportunity

We’ve discussed the GBPUSD range between 1.1915 and 1.2445 for weeks.

And with the pound once again testing range support today, it’s time to pay close attention.

However, although GBPUSD is trading above 1.1915 support, the lower highs recently could signal weakness.

That said, you wouldn’t want to short a market above such a significant support level.

The better opportunity would materialize on a daily close below 1.1915 as it would open up lower levels.

One such level is the late-October high at 1.1635.

But the target on a daily close below 1.1915 would be the 1.1400 region.

That’s the March 2020 (COVID) low and close to the 50% retracement of the rally that began last September.

I have to stress, though, that a daily close below 1.1915 is required to confirm the setup.

Until that time, we should expect strong demand in that region.

And if GBPUSD breaks the short-term trend line near 1.2080, we could see one more push into range resistance at 1.2445.

So although the pound has yet to set up, this is undoubtedly one to watch, given how clean these levels have been since December.