GBPUSD has established a slightly down trending range over the last seven months, and it currently sits as the bottom of that range. The markets look to be increasing the risk that they are willing to take on, and recent economic data, particularly last week’s unemployment number, has been stronger than expected. For now the pair will at least return to the midpoint of the descending range.
This week GBPUSD has been in a loose range this week, in between 1.5570 and 1.5715. The bias has been to the upside so watch for a break above the range. On that break, or even before, look to buy the pair for a long term trade with a stop loss below this week’s lows. The minimum target is 1.60 so you are going for around 400 pips. This is a long term trade so be loose with it but don’t forget to secure some profit.
