Talking Points
- GBP/USD Opens in Range
- R3 Resistance Sits at 16131
- Market Breakouts Signaled Under 1.6051
(Created using FXCM’s Marketscope 2.0 charts)
The GBP/USD has started today’s trading locked inside of our defined camarilla pivot trading range. As seen above, price has already traversed the daily trading range twice today, moving between support and resistance. Currently price is trading near its range resistance line found at the R3 camarilla pivot at 1.6131. Support is found at the S3 pivot at a price of 1.6078, creating a 53 pip trading range. In the event that price respects resistance, traders can look for a potential price movement back towards support.
A breakout would signal an end to the current markets range bound environment. Price moving below the S4 pivot at 1.6051 would signal a strong reversal from present levels back in the direction of the GBP/USD’s current daily trend. It should be noted that price has declined as much as 272 pip already for this trading week. Conversely a price move above R4 resistance at 1.6131, would increase the potential for a counter trend reversal. In either breakout scenario, traders can use momentum to then determine specific directional market entries.
---Written by Walker England, Trading Instructor