Forex Marketz Daily Forex News – Fully Markets Update
The GBP/USD Forex market tried to break the familiar range trade to the upside once again but bounced off of the 1.57 resistance level. Instead, this Forex market formed a bearish engulfing candlestick. We are waiting on confirmation of this formation.
Technical Analysis
Let’s look at today’s GBP/USD technical analysis. There is a cluster zone starting at 1.5480 that ends at the trend line at 1.5547. This technical support will be challenged on a daily close below the technical support lining up at 1.5547. The alternative GBP/USD technical analysis, should the Sterling recover, thus supporting this Forex market sees a cluster zone running from 1.5676 to the 1.57 handle. A break above this level challenges the technical resistance lining up at 1.5787.
Trade Strategy
Let’s discuss today’s trade strategy for the GBP/USD. There is a lot on today’s economic calendar that could cause quite a bit of Dollar volatility. Later today the United States will release its inflation numbers. These will be closely watched by the Fed as they are trying to decide whether or not to hike rates and normalize monetary policy in September.
From a technical analysis perspective, price action is too narrow between a technical support and resistance level. Timing, from a risk to reward perspective, to place a trade is a bit premature. There is no long or short GBP trade at this time. Taking this into account, I will opt to stand aside and monitor my charts for a better trade opportunity to come along. For today, I am flat in the GBP/USD Forex market.