GBP/USD — Fast Approaching A Selling Area

Jan 7, 2019

If you, like me, believe that the Sterling cannot possibly justify a break outside its macro range, which now I perceive to be between 1.28 and 1.25, until the Brexit situation clears up, then you’d probably agree that the Sterling is fast approaching an area of high interest to be a seller on strength. I’ve drawn the POC (Point of Control) that represents the highest accumulation of volume through Oct/Nov to highlight how stiff this resistance should become for a currency that keeps surging as a function of USD weakness and vague hope that the anticipated defeat of the UK May’s Brexit deal as part of the meaningful vote may lead to a second referendum vote or a general election being called as the next step. Hard to see any risk-reward to be a high timeframe buyer here unless you really are betting for a breakout of the EURUSD range or 2nd referendum.