Cable is eyeing a break of it's own

On a similar timescale to USDJPY, the pound I also trying to make a break. the 1.5465 - 1.5500 area has seen plenty of action on both sides and we're trying to push above it again today

GBPUSD daily chart range to watch

Breaks of this level have mostly yielded big moves so again, we're potentially on the cusp of a another run higher. We're banging our head on 1.5500 right now and that's going to need to be taken out before we think about the upside

Way above here the 1.58's present a very big resistance obstacle. Not only have we seen strong resistance ahead at 1.5785, we've seen more at 1.5820. Add in the 200 wma at 1.5846, the 55 mma at 1.5882 and the old 50.0 fib of the Jul 2014 move down at 1.5879, you can see what walls the pound has to go through if it wants to run higher

Back closer to home there's plenty of traffic in the way before we get to that area and 1.5525/30 remains one minor area as does 1.5590

GBPUSD daily chart

If you're not in longs already then waiting for a proper break here is the best play. We've run up 300 pips in 2 days and that means a failure up here could see a significant retrace as we haven't been building support levels on the way up. 1.5480 looks to be the first line of support from 1.5460 but are likely to be quite weak. Next will come 1.5420 and 1.5400. We're unlikely to find real strength until the mid to low 1.53's, particularly on any big news or data

If you do trade a break then keep it fairly tight going into the US data. The dollar may be on the back foot but shorts have learnt time and time again that they'll come steaming back if they get a good enough reason. I mentioned that a big miss in CPI later could break USDJPY, well, a decent number could do the opposite and the close support here in cable won't stand a chance