When the consolidation in $GBPUSD is over, the GBP will rip across the board. Cable leads the way during times of consolidation. Even with today’s new lows, I don’t think it’s over. If we look back to our last Fibonacci consolidation range, we got a new low only resulted in a return to the top of the range. Not the expected breakout. That breakout didn’t happen until the 50% Fibonacci level at 1.5850 was reached.
But if the consolidation in $GBPUSD is truly over, I think we see the $GBPCAD, $GBPAUD, $GBPNZD, and $GBPJPY all resume their bullish trends too. Price this week sets up at key support levels in these pairs: $GBPCAD (1.85), $GBPJPY (170), $GBPNZD (1.9550), $GBPAUD (1.85). The $EURGBP is also at the key 0.8350 level but euro seems to be on a tear all its own right now. However, for me, same theory applies for $EURGBP to push price lower on a rally in GBP.
Trade what you see. There are many geopolitical situations at play now than when sterling made its run last year. But cable reigns supreme. Watch its price action.