Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

GBP/USD Unable to Stick with the Breakout

The GBP/USD recently broke above a month-long consolidation resistance just under 1.57. The daily chart shows this bullish breakout last week. It then stalled again only to be confirmed with another bullish breakout. However, after tagging 1.58,the pair has been sliding sharply this week, bringing price back under 1.55 by the Wednesday (8/26) session.

GBP/USD Daily Chart 8/26
(click to enlarge)

The pair has been choppy, giving false signals at least for me. (I had 2 losers from GBP/USD in the past 2-3 weeks). Now, I am staying away from this pair, and instead gathering more clues.

So far this week, price action is suggestion exhaustion, at least at month-end. I would not be surprised if GBP/USD eventually works its way back to the pivots around 1.52 and 1.51. In the very short-term however, GBP/USD might deal with support around 1.54. However, I would limit the bullish outlook to 1.56 at this point. I would monitor the 1.56 level for key resistance. If price pops 1.56, the bearish outlook would be shaky. But if price retreats at or before 1.56, the bearish outlook is more likely, and we will likely see cable attack the 1.54 support.