GBP/USD Intraday Update Just want to highlight some red flags...

GBP/USD Intraday Update

Just want to highlight some red flags that may be signalling direction to the inevitable breakout that will occur after remaining rangebound all week.

1. The spike high above the top of the channel at 1.5240
2. Price never made it to the bottom of the channel but found support at 1.5100. Now according to the Fibonacci lines on the day’s move, GBP/USD can still turn lower as price is still respecting the 50%/61.8% Fibonacci levels. But if price continues higher, this price move short of the bottom of the channel is an interesting development.
3. After breaking below the 200SMA price closed above that line and then rallied. The rally took price back above the 100SMA and closed ABOVE that level. Though the Fibs are still being respected, if the subsequent candles can close above the 100SMA that is another bullish signal for cable.

Keep watching this pair. It can still break in either direction. The long term trend is bearish though the recent short term trend is bullish. Trade what you see, not what I think.