GBPUSD can't break up and can't break down. Something's got to give sometime
I've not liked the action in the pound for the last two weeks. It's struggled to got up and just when it looks like it's on the verge of crapping out it pulls up
It' s making it very tough for both longs and shorts, though shorts are still gaining the upper hand with the trend
GBPUSD H1 chart
Yesterday I noted the 1.5200/10 and 1.5125/30 levels as the areas needed to be broken to see us move on. The top was hit to the pip and it was all downhill from there. 1.5125 then went and we tried to stay below the 1.5130/35 level. 1.5105/10 is now the lower support level after two tests
I have no idea whether the pound is trading end of month flows or is just being pulled around by the crosses. It's always hard to know at this time of year. I'm expecting more of the same today with the new month & quarter starting. I don't suppose we'll get a clear idea of direction until maybe tomorrow or from next week.
Until then the US data is going to be the big driver. Before this recent drop we weren't really dropping on good US data as much as the euro, as people focus on the BOE being next to hike after the Fed. Watch for those signals to emerge once again. If they do then the downside might become a little tougher to break. If they don't then we may see a big push lower
