GBP/USD (daily chart) has tentatively paused its climb around a rough triple top resistance area in the 1.6300 price region. The first top of the triple top was established in April, then re-tested and respected in September, and finally re-tested and respected again yesterday with a minor shooting star candle retreat. Since yesterday, price has regained some of that retreat, with price once again rising to approach the 1.6300 level. This occurs within the context of a strong overall bullish trend extending back to the June 1.5266 low. It also occurs in the midst of a steep uptrend that has been in place for the past two weeks. If the pair is able to further this bullish trend with a significant breakout above 1.6300, which would confirm a bullish trend continuation, price could move towards further potential resistance around the 1.6475-1.6500 price region. If price once again respects the 1.6300 level with a retreat to the downside, key potential support on a bearish correction could reside around the important 1.6150 price region.
James Chen, CMT
Chief Technical Strategist
Forex trading involves a substantial risk of loss and is not suitable for all investors. FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice. Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein. FXS does not endorse nor is it responsible for any third-party posts related to this material.Get the 5 most predictable currency pairs