Yesterday’ s GBP/USD began its journey at mentioned 1.2512 and bolted to 1.2903. The point at 1.2903 was 27 pips above the dead stop level at 1.2876. The impetus for higher was exactly our target at 1.2632. What gave 1.2632 in our target was 1.2589. Above 1.2632 allowed the range to become 1.2632 to 1.2876. Above 1.2876 was bonus points for our shorts. Overall, GBP skyrocketed at 5 times its normalized range against 6 known break points.
Yesterday’s overall strategy was long at 1.2512 to 1.2632 then watch the break points on the way up and short for GBP at 1.2876. At 1.2903 was bonus for lot 2 to not miss the 27 available pips. The quick long then short earned almost the same amount of pips as the skyrocketed GBP but we did it cleanly, smartly and without gamble as levels, ranges and targets were known in advance. This wasn’t exactly a tough call as GBP began the day overbought and remains overbought today. The expertise however is to know exactly the levels, ranges, targets so not to miss 1 traded pip, trade smart and not sit watching all day.
GBP/USD break points today are located at 1.2800 and 1.2868. Below 1.2800 targets 1.2750’s. Any rise in prices in the vicinity of 1.2868, we’re selling. The rough spots for GBP are located from 1.2828 to 1.2834. And naturally based on the new nasty price structure, GBP currently trades in the 1.2830’s. The 1.2830’s are untouchable.
Overall, GBP supports are strong yet massively overbought at today’s 1.2499 and 1.2391. Further, all MA’s are overbought and all call for lower levels to 1.2500 and 1.2600’s, particularly 10 day to 200. The BOE range remains 1.2300 to 1.2800.