Pick of the Day: GBP/USD

After a strong move in GBP/USD for the last day or so, the pair is now in consolidation mode – it’s now trading in a 20 pip range, approximately. Now traders are potentially waiting for the numbers out of the UK at 4:30 am EST, and in these types of situations I like to play a potential breakout opportunity. I mostly like a short play here because of the seemingly new trend, but we’ll have a long play ready in case the market wants to prove us wrong. Also, please be aware of US economic numbers at 8:30 am EST and 10:00 am EST. We should see a stir in the markets, especially with the quarterly Nonfarm Productivity and the ISM Non-Manufacturing Indexes. So, here it goes:

Short GBP/USD at 1.8920, stop at 1.8940, pt1 at 1.8900, pt2 at 1.8860

Long GBP/USD at 1.8960, stop at 1.8940, pt1 at 1.8975, pt2 at 1.9020