Pound has been significantly strong this week, as investor risk appetite seems to be high, shown by general weakness in the yen and swiss franc. Furthermore from a technical level pound started the week at a relatively low price. I do beleive that there will be some selling today, or possibly profit taking, mainly due to what appears to be a significant level of resistance where price is currently at. There is no news out for pound today, so perhaps we can enjoy some pure price action 🙂

GBP/USD Daily chart

price is failing to break through mm3/1.2592 price area, indicated by the green on my chart, which is current resistance.

GBP/USD H4 Chart

price is trapped within an ascending triangle as shown on my chart. resistance in red. as we can see, we have failed to break the top, and are in what may be considered a resistance area, with an oversold h4 stochastic.

GBP/USD H1 Chart

price has broken my recent uptrend line, signalling a possible drop. if that is the case, i will look to enter in the yellow zone, which is below dm3, a bearish area, and should price come down from here, previous support, should act as resistance.

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