Trading Scenario: As we look into the charts GBPUSD is ranging in a channel of 200 pips. GBPUSD has got significant support at 1.5560 level. It has made several failed attempts to break below that.
It has a key resistance at 1.5665 - 1.5690, where it failed several times to break above that and finally stuck in a narrow channel.
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If we look at daily chart we have got doji candles in last two days at support level, which signifies a key reversal. We are now seeing a tight consolidation in between 1.5560 - 1.5600. This we would consider as a breakout range on GBPUSD. If the pair was able to break above 1.5600 go long targeting 1.5665, 1.5690, 1.5750 and 1.5800.
Alternatively if the price was able to break below 1.5560, go short targeting 1.5500, 1.5455 and 1.5320.
Note: While trading always use proper money management in executing your trades. This analysis is a guideline to TopPips forex trading community, where it helps to make better trading decisions.