GBPUSD paying attention to two breakout points

November 13, 2015 09:05

The GBPUSD has rejected from 1.5180 initially but it stopped in 1.5130 zone being unable to proceed lower. 1.5210 was hit afterwards making it strong POC at this time. But as we can see on the chart POC is actually a CONGESTION zone so the reaction to both longs and shorts could be limited in effect and that is why we need to watch for possible breakout points.
To the upside we have important 1.5250 zone ( consolidation top, H3 ) so a bounce above 1.5250 should target 1.5275 and 1.5305. If the price proceeds below 1.5190 ( 89EMA, L4, trend line, consolidation bottom ) the target is 1.5155. If the momentum is strong we should pay attention to next targets ( historical levels of s/r on higher time frames ). Above 1.5305, 1.5360 is the target and below 1.5155 the pair could reach 1.5090.

So the most important thing for the pair is to move off from congestion zone towards any of the breakout points.

Learn about GBP/USD historical relationship.

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