Today’s GBP/USD range and break points are located from 1.2668 to 1.2577. UK GDP saw a 5 pip violation to 1.2673 and its the interval from next points from 1.2668 to 1.2682. The violation is a possible warning to higher GBP later although range breaks are far far away and the sell off was the result of GBP at top of its daily trading range.
The 1.2668 to 1.2577 intervals are trading ranges without significance. Range breaks above are found at 1.2802 and below at 1.2495 and 1.2422. Overall immediate 307 pip ranges 1.2802 and 1.2495 and its why we see GBP at its 1.2600’s mid points as well as the traditional BOE middle range locations.
The BOE by far are the absolute masters in terms of monitor, manage, control and regulation of their currency pairs. The opposite is the ECB and EUR and its why EUR is a far better, wider movement and more profitable currency pair to trade. The ECB compared to the BOE is fast asleep to the point of comatose in terms of their currency pair manage, monitor and regulation. The BOE is lazer beamed focused on 1.2802 and will adjust accordingly while the ECB lacks focus to EUR levels. Why BOE night and day difference from ECB is UK money markets are far more sophisticated than any central bank on the planet.
Above 1.2668 and days ahead, 1.2709 and 1.2711 is the upper target provided GBP cuts through 1.2677, 1.2682 and 1.2692. I wouldn’t push it to higher GBP yet because USD provides massive headwinds at 1.2709, 1.2722, 1.2725 then 1.2771.
Today’s bottoms are located at 1.2584 but 1.2613 to 1.2618 and 1.2607 provide massive supports. Only on a a break at 1.2577 would GBP then target 1.2565 and 1.2534.
Brian Twomey, Inside the Currency Market, btwomey.com