GBP/USD at Swing High Resistance

July 3, 2017

I hope your weekend was a productive one, even if it was just time away from your charts. We all need to recharge the batteries from time to time and the fact that markets aren’t open on the weekend can sometimes be a bit of a blessing in disguise for the trading addict within us.

But it’s back into the full swing of things again today, as focus turns back to the majors with a look at GBP/USD. If you’ve been following the blog, you’ll have levels drawn showing price stuck within a 1500 pip GBP/USD range that formed after the Brexit low was broken and retested as resistance.

We had been trading this support/resistance level in the middle of the range from the long side, but price has now come back to retest previous swing high resistance:

GBP/USD Daily:
170703_gbpusd_daily
Click on chart to see a larger view.

As you can see on the daily chart above, it’s just a simple previous high that price has come back up to. There’s nothing more to this level and there’s nothing special about it while in the middle of that overall range.

With the bullish momentum behind that little push and the level having no significance other than a previous swing high, the level isn’t as strong as it could be. However, if you do like the level and the risk reward that trading around it offers, step into an intraday chart like the hourly:

GBP/USD Hourly:
170703_gbpusd_hourly
Click on chart to see a larger view.

Here you can see weakness being confirmed with a lower time frame double top forming within the daily resistance zone. For me, it’s definitely starting to look a little more appealing as a short now but I’m interested in hearing your thoughts around selling any short term strength? Be sure to share a chart and your thoughts with the @VantageFX Twitter account.

Best of probabilities to you!

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

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