GBP/USD: Levels, Ranges, Targets

Yesterday’s GBP/USD 154 pip range was located from 1.2269 to 1.2115 and actual was 1.2272 to 1.2210 for 62 pips. GBP/USD must breaks were 1.2251 to target 1.2199 and above 1.2269 to target 1.2308, 1.2316 and the elusive 1.2339. GBP/USD broke 1.2251 and traveled 41 pips to 1.2210. Overnight GBP/USD spiked from 1.2210 to dead stop at 1.2308 and dead stopped at 1.2316.
Today’s GBP/USD range is located from 1.2296 to 1.2146 for 150 pip range and a drop of 4 pips from yesterday. The top rose 27 while the bottom jumped 31 pips. Bottom support rise causes the current jump in GBP/USD. The same phenomenon is seen in EUR/USD. What drives both is not EUR or GBP but its pure USD especially GBP/USD above 1.2296.
Above 1.2296 then 3 targets exist: again 1.2339, 1.2347 and 1.2359. Most crucial is 1.2359 because a break targets 1.2414. Don’t look for a 1.2359 break. Yet 1.2339 remains a vital break because it offers downside targets.
GBP/USD shorts must break 1.2296 but many and massive supports exist from 1.2280 to 1.2287. From 1.2280 to 1.2287 is untouchable until a 1.2280 break then targets become 1.2271, 1.2260 and 1.2253. Below 1.2253 then GBP/USD is clear to head back where it originated from 1.2218 to 1.2210. The supports from 1.2218 to 1.2210 as well are many and massive so the vicinity of 1.2218 target is just fine.

 

Brian Twomey, Inside the Currency Market, btwomey.com