GBP/USD’s 154 pip range today is located from 1.2269 to 1.2115. GBP/USD broke above its significant resistance point with supports holding GBP below at 1.2259, 1.2254 and 1.2251. The import to 1.2251 is a break opens the flood gates to 1.2199 and 1.2187.
Today is free trade day for GBP/USD with targets at 1.2316, 1.2328 and 1.2339. The significance of 1.2339 is today’s daily pip range plus a range break is located at 1.2346. A break of 1.2339 and 1.2346 opens the opposite flood gate higher to 1.2382. Caution at 1.2339. Only an out of sync news forecast would see 1.2339 break. Under normal market trading conditions and central bank price control, no way to see the break.
Its not politics driving the show, its economics then, now and in the future. The economic aspect is controlled through money markets to contain the exchange rate. I named the policy after George Kennan, ” containment”. Prior market practices such as Intervention are long gone.
Brian Twomey, Inside the Currency Market, btwomey.com