GBP/USD Breaks Out of Daily Channel. Retests Resistance as Support on Weekly Open

Good afternoon traders,

When priced reached daily channel resistance on GBP/USD, we questioned whether the level was significant enough to halt the massive bullish momentum behind this push up.

After price has consistently featured a series of higher lows and higher highs since touching the range bottom for the second time back in January 2017, today’s price action shows no sign of halting this incredible run.

Take a look at the before chart from last week’s blog that I’ve linked to above:

GBP/USD Daily:

Click on chart to see a larger view.

Now fast forward back to the present and open up your own GBP/USD MT4 charts and the price action could spell real opportunity for the day traders.

First up the daily for context:

GBP/USD Daily:

Click on chart to see a larger view.

Then zoom into an intraday chart and take a look at how price opened the week on support and then ripped higher off the level:

GBP/USD Hourly:

Click on chart to see a larger view.

As the higher time frame range top resistance is basically a weekly level that carries such significance, this isn’t the sort of level that you should be buying and holding day trading positions off. It is still just as likely to sell off and hold as resistance.

But you know what they say about making hay while the sun shines

Best of probabilities to you!

Dane Williams – Vantage FX

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Source: Vantage FX Blog