GBPUSD Intra-Day Key Level Holds. Re-Distribution Phase in Play | Dec. 4th
GBPUSD – Consolidation/Re-Distribution Phase After Breakout
After breaking above the key 1.6255 level and offering a great pullback setup that we mentioned in our prior weekly commentary, the GBPUSD opened the week on a gap up. In our most recent commentary, we suggested getting long on pullbacks towards at the 1.6321 intra-day key level. Today’s low was 1.6322, hitting the level 2x over 12 hours perfectly where savvy price action traders got long, so hopefully you did the same. Currently the pair is +55 pips from that intra-day aforementioned level, but is in a range and re-distribution phase post breakout.
For now, the ‘lines in the sand’ are marked with 1.6321 being downside support and 1.6436 being upside resistance. Traders can look to play the range on corrective moves into the levels, while watching for a break. I’m favoring the bull side still, so if the topside level clears, then we’ll look to get long, targeting the big figure at 1.6500 and 1.6600 which is the Aug. 2011 highs.
NOTE: The BOE has a rate decision tomorrow, so careful trading around this major economic event.
Check out our latest Live Price Action Trades of The Week article.
Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.
Want to Learn Price Action Strategies for Trading Forex?
Sign Up for our Monthly Newsletter and Get our FREE E-Book