GBPUSD – Gunning For Major Resistance | Apr 9th

GBPUSD – Approaching Multi-Year Resistance
If you look at the daily chart, what you’ll see is the yearly resistance coming in around 1.6820. But step back to the weekly chart, and you’ll see the cable is trying to take out some major resistance. How big? Levels that have not been seen since 2009.

Looking at the price action and the chart below, we can see only a few other weekly peaks above the current one being made. They are (besides the 2014 high), 1.6877 from Nov. 09′, and 1.7040 from Aug. 09′. 

My guess is either a) we get a massive breakout taking out the stops and options barriers above these 4 year peaks, or b) we run into some heavy sellers protecting those levels.

Although I’d rather be short USD than long, I think this is getting over-extended for the cable. So I’ll look to short at 1.6850/70, and 1.7000/7020 with stops above the Aug. highs. Downside targets will be the weekly 20 ema & dynamic support (held since Aug. 13′) around 1.6500.

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