The greenback has been the weakest among all the other majors earlier on in the week. We didn’t have any top tier data coming from either the UK and the US apart from Yellen’s speech on monday. The Fed are aiming to ease back significantly this year as they have suggested two additional rate hikes. She mentioned that the Central Bank has shifted from a post-crisis exercise of healing the economy to one aimed at holding in to the progress made so far. From their March meeting minutes the Fed discussed reducing their balance sheet of $4.5 Trillion balance sheet later this year, gradually reversing emergency bond purchases made during the recession and recovery.
– Later on today we have the consumer and producer prices scheduled. This could possibly result in a different direction than I have technically setup to trade this pair.

GbpUsd Daily Chart

Price opened at 1.2550 within a bear area zone at the beginning of the month with the target being MM1. It is currently at support at the monthly pivot and the market action moving averages are totally flat. should price break down beyond this level the next eyed support is eyed at MM2 at 1.2300 where also lies the 61.8 fib level.

GbpUsd H4 Chart

Price recently broke the bottom of the wedge it was trading within. Though having opened at WM2 at the beginning of the week it is currently at the role reversal, I expect a downward move from this level onward. Price is currently at the 21 moving average and I will be looking for selling opportunities from this level moving down.

GbpUsd H1 Chart

Price seems to be in a range since as market action moving averages are flat. Some bears are definitely poised to sell off DM3. Though for a more conservative entry I would wait for a break down the bottom of the range and a retest at the daily pivot.

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