The reason why this is my chart of the day is that most of the gains made by the GBPUSD in April have already been covered by the first few days of May (Chek the monthly charts).
Note, I labelled on the chart that the 200-day Moving Average has been used as resistance twice. There seems to be a consolidation between the 200-day MA and the ascending trendline support. You could also state that it’s ranging between the 50% and the 61,8% retracement levels.
I speculate that if it does break the range there will be a strong trend upwards or downwards. I’d be a seller below the 50% retracement and a buyer above the 200-day MA. Trading between these 2 ranges could work, however, it is getting a bit too tight and scalping would be the best trading method for that. There is a bit of news being released this week, so keep an eye because this might change sentiment.
If you have twitter, @faithmight solely trades GBP currency pairs. You might get some good ideas from her.
Otherwise, any opinions or advice would always be helpful.
