Monday, April 21, 2014

Consolidation on the GBP/USD around the 1.6800 level.

Today it has been a calm day in the financial markets. Most of Europe was closed including the United Kingdom. That is why we have seen the Pound stay in a sideways movement versus the Dollar around the 1.6800 level. The longer the price stays oscillating around a support or resistance zone, the higher the probabilities of it breaking it.

During the last few days, the volatility on the pair has decreased, just as we see it on the daily chart below, courtesy of the Forex Broker Activtrades http://www.activtrades.co.uk/. We can see that the bodies of the candles are very small, showing us that the pair is very unpredictable around this zone.

Never the less, let us pay attention to a possible breakout on the GBP/USD of the 1.6800 level to the upside. The upward momentum can take the price to the next round number of 1.6900 or even the 1.7000. Above the 1.7000, there is a last historical resistance at the 1.7040 level.


4 comments:

  1. Looking good for a break to the upside.

    ReplyDelete
  2. It seems it doesn't want to stop climbing.

    ReplyDelete
  3. If the current consolidation holds I will long cable

    ReplyDelete
    Replies
    1. Hi Peeter join the club have a very small long for a while that has been keeping me happy.

      Delete

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