British Pound Struggling At New Resistance

For many weeks running, GBP/USD has been trading sideways in the pink consolidation. After moving higher recently, just what are the chances of the breakout sticking?

GBP/USD recently broke above the pink multi-week consolidation, and the bulls didn’t really look back. The pair extended gains and reached the orange resistance area created by the May peaks, and the 50% Fibonacci Retracement.

This move took the exchange rate also slightly above the upper border of the rising green trend channel. Before jumping to conclusions, let’s take a look also at the position of the daily indicators. Both the CCI and the Stochastic Oscillator are very close to generating their sell signals.

Coupled with the above-mentioned resistance zone and the current position of the daily indicators, it seems that a reversal and lower values of GBP/USD may be just around the corner.

Should we see an invalidation of the breakout, we’ll consider opening short positions.

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Nadia Simmons

Forex & Oil Trading Strategist

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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