GBP/USD - part a) Technical only
Details on the Chart. The higher low is bullish, with the market behaving as though 1.25 is fair value, and reflects the most traded level over 6 months.
My view is balanced on whether the resistance trend line is broken or not (orange line):
There is a higher probability that price moves lower from this resistance based on history since Dec-16. However, if price moves above 1.25 and holds (i.e. consolidates) for a few days its a sign that support is being found at 1.25, buying is building, and GBP/USD is poised to break through 1.28.
Conclusion: hold until we enter Key Zone. If already long, take profit and pause; don't risk a pullback to the lower resistance.
My view is balanced on whether the resistance trend line is broken or not (orange line):
There is a higher probability that price moves lower from this resistance based on history since Dec-16. However, if price moves above 1.25 and holds (i.e. consolidates) for a few days its a sign that support is being found at 1.25, buying is building, and GBP/USD is poised to break through 1.28.
Conclusion: hold until we enter Key Zone. If already long, take profit and pause; don't risk a pullback to the lower resistance.
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