To head higher, GBP/USD must break 1.2280, 1.2286, 1.2290 and most important 1.2299. Then GBP begins to target 1.2339 and further out 1.2348 and 1.2359. The overall range for today is located from 1.2299 to 1.2146 for 153 pips. Despite what appears to be an impressive 153 pip range, GBP has ability to travel but not the will as the central bankers continue to stop currency price movements.
In this new period of central bank tight controls, the question must be addressed: are currency prices into a De Facto type of Gold Standard and what will the future look like for the currency price. Will standard indicators pass muster as a trade indicator or will adoption of a specialized math formula be required. Finalization for GBP will be determined February 2017 but if present circumstances are any indication, the finalized report will only confirm what central banks implemented as market practice since June 2016. GBP is vital in the overall scheme because many, many currency pairs were designed and trade under the GBP methodologies to include AUD, NZD and CAD as just a few exmples. If the main pairs are controlled then cross pairs are equally affected. Early assumption is the future will be all about cross pair trading to earn the daily pips.
GBP/USD on the bottom side is actually contained from both USD and GBP from 1.2200 to 1.2224 alonside many levels in between from 1.2205 to 1.2218. GBP to head lower must break 1.2280, 1.2271 , 1.2247 and 1.2235 then a shot to 1.2224 exists where we reverse long.
Viewed from range breaks, GBP breaks are located from below 1.1985 and above at 1.2475 and 1.2722. Most important break in between to go significantly higher is 1.2658.
Brian Twomey, Inside the Currency Market, btwomey.com