Forex technical analysis: GBPUSD makes another break for it above 1.3000
Yesterday's run higher failed...
Yesterday, the GBPUSD raced above a quadruple top in the 1.2988-90 area, and also above the natural resistance area at 1.3000 price level (and outside the Red Box).
Later in the day, that support area was tested and held, then broken to the downside with a vengeance on reports that Comey's memo on Trump's interference in the FBI investigation, might not be as credible as first thought. The news and break below the technical support (at 1.2988) sent the pair sharply lower. It bottomed near a trend line connecting recent lows (see green circles).
However, the price has rebounded higher today, and in the process is back above the aforementioned levels. The pair is making another break for it above the 1.2988 and 1.3000 levels. The trading decision is easy. Stay above the Red Box, more bullish. Move below, not so bullish anymore.
We currently trade at 1.3019. That high yesterday was 1.3047. So we sit between the line in the sand at 1.2988 and the next target at 1.3047/50 area. A move above that level, and we will be looking toward the 1.30798 level. That is topside trend line on the daily.
If you love the GBPUSD, the risk is 1.2988. If you like the GBPUSD, but don't want to pay current prices, wait for the dip. Also understand it is Friday. There is the traditional weekend risk in effect. Only you can answer your risk tolerance for the liquidity risk assumed over the weekend.