The price forms support and resistance level as it goes – a couple of months ago, the level to watch on the top side was 1.30. It was a big round level so it was very important.
Then, after that level was gone, 1.3050 came into play. We saw the price bounce several times over the last couple of months.
As the forex market grew more weary of the USD, the 1.3050 level finally had to let go and 1.31 took its place. Although, it didn’t last that long and 1.3150-60 became the line in the sand for GBP traders.
The buyers tried this level a couple of times last week but without any success. Today we dipped below 1.30 shortly, but the buyers are pushing back up now, so I think we have a trade in sight.
We´re about 15 pips below there right now and still climbing closer. I´m itching to open a sell forex signal, which I may do anytime now.
Stochastic is already overbought on the hourly forex chart and RSI is getting these as well, so I think I´m going to give this level a go.
We just opened a sell forex signal in GBP/USD. There was a spike higher just now which happened in most USD pairs. Let´s just hope that the month end cash flows don’t make a big mess of the forex majors and the price respects the levels.
Update: The cash flows are taking over as London draws to a close and that signal got smoked as the spike extended to 1.32.
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