By: Doug Rosen
GBP/USD pair has been trapped in the same 100 pip zone for the last few weeks and just cannot seem to make a decision. It bounced off a double bottom last week and is now up against resistance and has fibbed.
On the daily chart it is obvious we are at the 38.2 fib level of the recent move down, overlapped with the 55 ema and even thought he upper Bollinger band is open and pointing up, there will be a struggle at this level.
Moving over tot he 4 hour chart price has wicked the 233 ema which overlapped with the Monthly M4. If it reaches that area aagain, it could be a good area to take a scalp short. If it breaks that area which is 1.5800 then I would be looking to go long.
If price fell down to 1.5726, I would also look to take a long. Moving over to the hourly chart we are looking bullish, we are riding the ema's. If price fell to 1.5740 I would look to take a long off the 21 ema, exit with a tiny loss if price fell 5 - 8 pips against me.
Be very cautious around the 1.5790 area since that is the weekly M4 and could be a triple top. 1.5784 also happens to be yesterdays high. Be very careful around the zone between 1.5785 - 1.5800 since anything can happen. Look for red off resistance to take a short, or a break of resistance, pullback then green to take a long.