On the , GBP/USD bulls chalked up five consecutive candles last week. Despite this, Friday’s candle formed a strong-looking selling wick ( ) that pierced through the top edge of supply at 1.3291-1.3233, and came within a few pips of plugging into a 50.0% resistance value pegged at 1.3344 taken from the high 1.3655.
The impact of Friday’s slightly lower-than-expected US data saw the British pound dash through offers at the 1.33 handle. As can be seen from the H4 chart (better on the M30), a high of 1.3337 was achieved before the pair began paring gains into the closing bell.
Suggestions: With weekly price still showing potential to the downside and daily price fixed within supply at 1.3291-1.3233, our bias, for the time being, remains . This – coupled with H4 price trading sub1.33 in the shape of a full-bodied candle – could lead to the piece selling off down to the 1.32 handle/August’s opening level at 1.3201 today/this week.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Shorts at current price are valid without the need for further confirmation (stop loss: 1.3340).