Inside Day At Trend Line Resistance – GBPUSD Update 29th October
- The GBPUSD currency pair has printed an inside day at the trend line resistance area highlighted below.
- Pound dollar made a strong upside move on Wednesday and Thursday but stalled ahead of this confluence area which is comprised of trend line resistance and a 61.8% Fibonacci retrace level. The combination of these two technical factors and market sentiment had cable trading in a tight range before the weekend.
- Inside day patterns are seen if a daily high is lower than the prior day’s high, and the low also comes in higher than the prior day’s low.
- Another way to look at these setups is that a consolidation phase is experienced as the market waits for a new directional bias. The resulting move, on a breakout of the inside day, can sometimes come with renewed volatility if orders are clustered around the daily high/low.
- This particular setup is also the narrowest range in the last 4 days which is another element that traders sometimes look for. See our inside day article for further information about these candle patterns. It goes without saying that not all inside day breakouts are going to work out as planned; nonetheless they provide useful additional information for market participants, regardless of their approach to trading.
Inside Day On The GBPUSD (D1 Chart)