GBP/USD: Levels,Ranges and Targets

GBP/USD will see serious changes in the next 24 to 48 hours of trading from the Sunday opening to Tuesday.

The stated market sell gift on GBP/USD rises on Brexit was a true gift. The explosive move upon us occurred. The 1000 pip move mentioned occurred. EUR/USD 215 maximum monthly pip ranges from 1.1200 violated on brexit above by 10 pips from Maximum 1.1415 to 1.1425. The downside at 1.0995 violated by 83 pips to 1.0912 and 15 pips from reported 1.0927. Ranges held for 17 trading days, 19 to include Sunday openings.

GBP/USD must go far higher. The caution area comes at 1.4200 to 1.4380. The caution area means the break points are located at 1.4386 and 1.4459 and the same break points from last week. Most important to the caution area is GBP/USD price could normalize at this point and volatility could fall to normal trading as the vast majority of current oversold is relieved.

At 1.4380 for example, next above points turn to 1.4395 and 1.4503. On a break of 1.4386, next points remain 1.4395 and then 1 pip up at 1.4504. GBP/USD will continue to struggle higher from 1.4386. At 1.4386, easy trades are over and its back to analysis.

Longer range targets, 1.3811 and 1.3936. Targets and GBP/USD will be focus all week.
The big base point is located at 1.3508. The big base point means prices between 1.3508 and 1.3996 are literally bottomed on the floor.

Further concerning aspect to GBP/USD 1.4386 is USD/JPY is low, flat on the floor and highly oversold. Once GBP/USD settles, USD/JPY may begin a massive move higher.

Big base points in USD/JPY are located at 101.68 to 101.21 then 100.90 and 100.06. On a break lower at 99.62, USD/JPY could remain lower for longer as USD/JPY must decide as was the case in 2008 the impending Realignment.
Big break points above in USD/JPY, 103.81 and 106.31.

For GBP/USD, Most important points on the way up, 1.3808, 1.3949, 1.3996, 1.4183, 1.4230, 1.4323, then 1.4386.

GBP/JPY correlations to GBP/USD from high +90%, now +60.

GBP/USD will be volatile but direction is higher, much much higher.

Brian Twomey, Inside the Currency Market, btwomey.com

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