The GBP/USD continues to consolidate below 1.5450 with all of the price action taking place below this level as a result (likely) of the Bank Holiday's in the UK. Price action has printed 2 pin bar reversal patterns with the wicks testing the Weekly Support level at 1.5350 several times and failing to hold below. The pair is caught between this level and the Weekly Pivot at 1.5443, printing higher lows. but more or less equal highs and creating a pseudo ax formation that could indicate in spite of the pin bars that suggest higher prices, a break to the downside. If price breaks above the weekly pivot, we will be looking for ressitance at 1.5511 but the ultimate goal will most likely be a 38.2% retracement which would see prices on the pair return to 1.5660. There is not a lot of resistance between the Weekly Pivot and 1.5660 as there is something of a technical vacuum in between. If prices do fall below 1.5550, (a close below is extremely important) the next real level of support is down around 1.5150, which would provide traders with some very nice short potential. Either way, we could see some very nice trading on this pair in the next few days or weeks.
Happy Trading!