The GBPUSD is about one step forward. One step back. Especially when it comes to breaks below the 1.6000 level.
GBPUSD is back above the 1.6000 level and looks toward the 200 week MA at the 1.6018 level now.
The GBPUSD broke below the 1.6000 level in trading today, reached the low target at the 1.59507 level quickly after the US GDP.
However, with the move lower in the USD post data, the pair has rebounded back above the 1.6000 level. The 1.6018 is the 200 week MA for the pair this week. The 1.6000 level is the 50% of the move up from the 2013 low to the 2014 high.
Each time the GBPUSD falls below the 1.6000 level, the market seem reluctant. Sure there was a 2 1/2 day plunge in the height of the stock market woes, but the early October move (which had the same low as today), and the October 22 one hour dip and now today has me wondering if the shorts really love it below that level.
IF the price can stay below the 1.6018 level, maybe the correction higher is just that, but I am not in love with the price action. I may like some of it, but not fully committed. Trade it if you like but for me, I don’t really trust it.
PS If we cannot get below 1.5991, the shorts are not showing me much (low from October 22nd)
