Pound is offering good opportunities for range trading during the past 2 weeks, with the price stuck in a small range, which mostly means that it is preparing for a big move…either up or down. For shorts, we have a clear SL zone above 3600, if it starts dropping, the first big target zone is 2500 and a small one at 2800, which was my initial short target for august. From a technical perspective, its a clear short of GU between 3100-3200, but pound doesn’t always respect technicals, especially not before spiking above or below good entry zones. So it might be a good opportunity to watch and evaluate and look for shorts if it isn’t able to break above 3200. Eventually bulls will get tired, if we stay in the current range, and give up. Then, 2800 would be the first target for bears.
First, I would like to mention something very interresting. EU had 8 bullish weekly candles in a row. Anyone remember the last time this has happened? Most won’t…it was in 2004! Check the chart below.
EU is currently stuck in a range between 1700-1900, so it provides good opportunities to both, bulls and bears. I am inclined towards scalping the spikes between 1800-1900, with a target of 1700-1720. Until 1695 breaks properly, we might be stuck in this range for now. I wouldn’t buy for targets above 1900, because a spike above 1900 might be a bull trap. 2 more weeks left in august, so lets see if we are still stuck in this range by the end of it, or if bears manage to break below. Until then…its scalping time. I highlighted possible target zones on the charts below.