Trades between swing levels over the last 3 days
The GBPUSD failed to extend above recent swing high levels in the NY session. The Asian and London morning sessions failed to get below a lower swing level at 1.2661-706.
We now trade between the 100 hour MA (at 1.2699) and the 200 hour MA (green line) at 1.26791. The current price is 1.2688. Ootside those MAs sit the ceiling area above and floor area below. The market’s price action is saying “I don’t know which way we go next?”.
The good news it will know at some point and the red box has been drawn.
Should you place the bet now?
Now is not the time to go in. It is Friday afternoon and the G20 risk event is this weekend. However, next week, a break in either direction will be eyed as a vote for that direction. It is as simple as that. I would expect traders to look to stay outside of this red box on a break.