The buyers showed up yesterday and today at technical support. Can It keep the momentum going now
The GBPUSD moved sharply higher on Monday, corrected lower yesterday, and rallied back higher today.
The key was the correction yesterday, and then the hold at support today (see post from yesterday outlining levels).
Looking at the hourly chart above, the price moved down to a support area defined by swing highs from last week (see lower yellow area). The price did dip below the area, but could not get to the 100 hour MA (blue line) and a lower trend line.
Today, when the trend line was tested (red circle 3), that support held. The buyers started to take the price higher. Those were the clues for the buyers, and they took control.
Now the price is back testing the high for the month at 1.40879. Can the buyers keep the momentum going? Do they take some profit before the end of the London/European session and the FOMC later this afternoon.
Traders can lean against the high with stops above.
ON a dip, keep an eye on the 100 bar MA on the 5-minute chart as a close intraday risk level. Move below, and there could be more of a correction into the London/Europe end of day. Before the run higher, the price stalled at the 100 bar MA.
