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GBP/USD: Whole Lotta Confluence Goin' On

Published 08/06/2015, 07:45 AM
Updated 07/09/2023, 06:31 AM

Minutes ago, the Bank of England announced that overnight interest rates would remain unchanged. The market dropped over 100 pips on the announcement, as the chart below shows.

GBP/USD 5-Hour Chart

On the daily chart, this is showing up as a large down day, but price has still not yet broken out of the confluence zone it is in. We have two trendlines as well as the 50 SMA and 200 EMA all in the vicinity of where price currently is, as the chart below shows. This may be an opportunity to speculate on an increase in volatility, regardless of which direction it goes in.

GBP/USD Daily Chart

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