GBPUSD: Getting ready for breakout

Written by Raul Lopez on August 4, 2009. Posted in Trades & Analysis

The GBPUSD is trading just at an important long term resistance level around 1.6986. The thing is, the market is creating a short term range in between 1.6907 and 1.6988. Please take a look at the next chart:

GBPUSD

We need to see a break of the short term range before we start looking for trading opportunities. Seeing the EURUSD already broke the top of the range, my bias would be long in the GBPUSD, but we can’t take decisions based on other currency pairs, we need to wait.

My trading plan:

If the market breaks the short term resistance level, I will start looking for long trading opportunities, the next long term resistance level is at 1.7477.

If the market breaks the short term support level, I will start looking for short trading opportunities, the next support level is at 1.6552.

Good luck

Raul Lopez

Tags: cable, GBPUSD Analysis, pound, pound analysis

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Raul Lopez

I've been trading the forex market for more than 11 years. All my trades are based on price action. Check out my Forex Coaching program, I can help you develop a system that helps you trade consistently.