GBP Update – High Volume Breakout
In the last post, I noted there was strength behind that had been sustaining the prices, but further confirmation was needed to enter in a trade. In GBPUSD, the confirmation was the weak congestion zone being broken, but as prices were approaching it, there was some supply shown by a weak congestion bar. The reaction rally was on low volume, showing there wasn’t enough ‘gas’ to break the resistance. On the London session, prices broke out the lower zone at 1.316 and the support at 1.313 in the same hour, on very high volume, which was the definite confirmation of a bearish movement ahead.
While this market sell-off goes on, there isn’t much that can be done; there should be a consolidation or a price rally to start planning a trade in GBPUSD in the intraday charts.