The U.S. dollar remains in consolidation after the past year’s rally. Now that the Federal Reserve has actually taken hawkish action, there is a possibility that the U.S. dollar weakens even in the face of a hawkish Federal Reserve. Therefore, the $GBPUSD remains bullish for as long as price remains above the 1.4000-level. However, as the $GBPUSD has attempted to move higher, price currently finds strong resistance at the 1.4500-level. While holding below the 1.4500-support level is actually a bearish signal for future price action, price has been unable to gain traction in either direction. The $GBPUSD has actually become rangebound between the 1.4500-resistance level and the 1.4000/50-support levels. As price action coils in this range, the $GBPUSD has actually found resistance within the greater range at the 1.4350-level. As the new trading week gets underway, there is no action to take whatsoever while the $GBPUSD trades within the range. Prudent traders wait for price to move to the range extremes before setting into action.
Premium trade setups with targets and stops are published in the GBP/USD Outlook for the Week in Volume 59, this week’s Quid Report.