GBPUSD Trading In A Range

The sterling and the U.S. dollar are now oscillating within a stable formation between the range of 1.4253 and 1.4213 respectively.

Both the bulls and the bears are now placing equal pressures in their attempts of taking control over the price.

The latest upside pressures led the pair to rise from as low as 1.4078 to as high as 1.4253, an astonishing bullish momentum indeed.

Probable Scenario

In the scenario where the GBPUSD breaks and stabilizes above the 1.4213 area, the price could escalate as high as 1.4253, Fibonacci 50.0%, and 1.4291, Fibonacci 61.8%.

The stochastic oscillator, even though the price has already approached close to the 20 level, indicates that the pair has greater chances of appreciating to upper levels.

GBPUSD

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 1.4160 area the pair could decline as low as 1.4078.

Today’s Major Announcements

  • The Retail Sales (MoM) (Dec), the Retail Sales (YoY) (Dec), the Retail Sales ex-Fuel (MoM) (Dec), the Retail Sales ex-fuel (YoY) (Dec), and the Public Sector Net Borrowing (Nov) announcements are expected to have a medium impact on the sterling
  • The Chicago Fed National Activity Index (Dec), the Markit Manufacturing PMI (Jan), the CB Leading Indicator (MoM) (Dec), and the Baker Hughes US Oil Rig Count releases are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish):1.4213
  • Bullish take profit targets:1.4253, 1.4291
  • Stop loss target:1.4160
  • Alternative trend (Bearish): 1.4160

Bearish take profit target: 1.4078

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Elias Kazamias

  Nathan is a long term City of London trader that turned running Forex Binary Club as a hobby to full time chief educator with FX Instruction. Nathan uses his unique and highly popular coaching style to educate traders in both forex and binary options.

About the Author

mm
Elias Kazamias
  Nathan is a long term City of London trader that turned running Forex Binary Club as a hobby to full time chief educator with FX Instruction. Nathan uses his unique and highly popular coaching style to educate traders in both forex and binary options.