GBP/USD Daily Chart Reviews

[BigPippin]

I was overwhelmed by all the positive feedback I got on my EUR/USD and AUD/USD Daily Chart Reviews, so I figured I'd add another crowd favorite to the mix -- GBP/USD!

As with what I did on EUR/USD, I will be marking out important levels on GBP/USD's 15-minute chart, highlighting market-moving events. Let the color scheme below be your guide:

Green – previous day high and low (PDL)
Blue – previous week high low (PWL)
Pink – day open price (DO)
Purple – week open price (WO)
Black – major (00s) and minor psychological (50s) handles (will also be called MaPs and MiPs)

I hope this helps!

To start things off, here's my very first chart review on GBP/USD:



What do you guys think? Tune in here everyday to get more chart reviews of GBP/USD!

[Bijoymj]

Nice thread. It really helps to find out the reaction of market to major events which will definitely help as a catalyst to determine market flow in future against those events. Keep on rocking...............

[BigPippin]

Those discussions of a potential rate cut at the last Bank of England MPC meeting sank the pound early in yesterday's London session!



Price action also just stopped short of retesting the cluster of inflection points before reversing during the New York session.

[BigPippin]

We saw solid support at around 1.5650 in the first half of the day. And action was particularly hot in the hours surrounding the release of U.K. retail sales data!

[BigPippin]

After chillin' like a villain during the Tokyo and early London session, Cable crawled lower as risk aversion helped the dollar rally. Technical levels didn't hold too well.

[BigPippin]

GBP/USD was all about risk aversion on this day. From its opening price, it fell all the way down to 1.5500 -- an over 100-pip drop!

[BigPippin]

That bearish divergence play at the 1.5550 MiPs was a pretty sweet setup!

[BigPippin]

The release of U.K. GDP data set off fireworks on GBP/USD! From the previous day high (PDH), it fell right down to the previous day low (PDL)!

[BigPippin]

Not much activity on GBP/USD at the start of the day... but boy, did the market wake up in the London session after Draghi's supportive comments! A 200-pip rally, son!

[BigPippin]

Looks like the market was all gassed out after Thursday's big rally! Even with the release of the U.S. GDP report, GBP/USD spent the day trading sideways, with the 1.5700 handle acting as an area of interest.