GBP/USD went basically unchanged for the Monday session as traders went back and forth in a 100 pip range. The pair currently resides in the 1.55 area, and this level has been very important lately. With this in mind, we think that perhaps we are trying to bounce a little from this level as it is the start of support going all the way down to 1.53 or so. If we can break lower, we wouldn’t necessarily sell until we get a close below the 1.53 level on the daily chart. Buying is going to be very difficult until we reach the 1.58 level or higher on a daily close as the action has been so bearish lately. A close below 1.53 is preferred, as it signals a break of the neckline on a massive head and shoulders that should send this pair down about 1,000 pips.
Written by FX Empire