A quiet start to the trading week, most currency pairs have produced small sized candlesticks. The DOW Jones and S&P however did see a low of bullish price action toward the New York close.
The GBPUSD is now testing an important swing level on the daily chart. The only range top that was recently breached is now being tested as support from the high side. This level will be the defining ‘line in the sand’ to whether the uptrend will remain intact.
A breach of this level to the low side could see price collapse and the trend momentum destabilize, but we are anticipating that the bullish momentum will remain intact here and this horizontal level will hold as a swing point. An inside day formed as a result of price stalling and churning at this high focus area. Because we favor the bulls, and the fact the trend is up, we are only looking for bullish breakouts here.