gbpusd ranging

Last session an Inside Day candle formed right underneath a key resistance containment line on the GBPUSD daily chart. The market is in obvious ranging conditions and this level marks the range top. Breakouts to the high side of this level are at high risk of becoming a bull trap and we are looking for these bull traps to cue us into short positions.

The best play here is to wait and see how this New York session daily candle closes, or alternatively, you could watch for any strong 4 hour signals that demonstrate a breakout trap of the range top. If a breakout to the upside does occur and price maintains itself above the range top, then we will be watching for the range top to act as support via a bullish price action signal to considering getting long.

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