The Pound is trading in a narrow range, and it’s getting narrower. The trend lines are about to collide – meaning that an explosion is underway. There are a few upcoming events that will determine the direction of explosion. GBP/USD is bound by two trend lines that aren’t parallel. Using the hourly chart, I’ve drawn a downtrend that caps the Pound from above. It begin in the middle of last week from a peak at 1.5764. The other line is an uptrend beginning just a few hours later, from a bottom at 1.5560. This 200 pips range became narrower: the peaks became lower and the bottoms higher. These peaks and bottoms lay out the trend lines. The trend lines meet somewhere in the early hours of Thursday, but the explosion will probably come earlier. Tricky Tuesday Tuesday features the release of British consumer prices. This monthly publication is special this time – Inflation will probably miss the government’s target of 1-3% – this will enforce Mervyn King to explain the reasons and lay out measure. Thinking about a rate hike in the UK? Not so fast. King is convinced that this was a one time event. If the expectations are met, and inflation reaches an annual level of 3.6%, what will King say in his letter? Nobody knows. This uncertainty will lead to choppy trading and to an explosion. If expectations aren’t met, it’s already enough for a surprise. King will be pleased that his analysis was correct. The Pound won’t smile. Busy Wednesday On Wednesday, Britain sees many employment figures, with the Claimant Count Change as the most significant figure. Will the number of unemployed Brits falls again, for the third time in a row? A renewed rise will hurt the Pound. Another drop is expected, so no big moves here. But there’s another release at the same time – MPC Meeting Minutes. In their recent meeting, there was no rate hike and no allocation of new cash to the Quantitative Easing program – also known as Pound spilling program. Good for the Pound? Wait. Also here, King has an impact. In a public appearance, King didn’t rule out pumping more cash, thus weakening the Pound. Did he say something about it in the recent meeting? Did another member raise this possibility? The members usually don’t vote unanimously. Add the meeting minutes uncertainty to the employment figures, and you have a recipe for choppy trading. If GBP/USD will remain in a narrow range during Tuesday, it will most likely chose a direction on Wednesday. The next resistance line above 1.5764 is 1.5833. Looking down, 1.5350 supplies significant support far down. Let the games begin! Want to see what other traders are doing in real accounts? Check out Currensee. It’s free. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Hacking Winners Yohay Elam 12 years The Pound is trading in a narrow range, and it's getting narrower. The trend lines are about to collide - meaning that an explosion is underway. There are a few upcoming events that will determine the direction of explosion. GBP/USD is bound by two trend lines that aren't parallel. Using the hourly chart, I've drawn a downtrend that caps the Pound from above. It begin in the middle of last week from a peak at 1.5764. The other line is an uptrend beginning just a few hours later, from a bottom at 1.5560. This 200 pips range became narrower: the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.