Today is Fri, October 20, 2017 17:44:00 GMT
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Forex Chart of the Day British Pound (GBP) Breaks Down!

I have recently been talking about the range-bound nature in the markets of late and how good trading opportunities are available to trade between those ranges.  Most notably, I highlighted the British pound (GBP/USD) as one such opportunity.

Well there is also another opportunity that is available, and occurs when the range breaks out or breaks down.  This occurred yesterday when the US dollar strengthened and just about all other currencies sold off as a result.

The bottom of the range was at 1.5575 off of the previous swing low and that level broke down easily  As you can see from the chart, once that level was breached it was off to the races.  Now that level has become resistance, and could provide further opportunities for short entries as that level gets tested.