The GBPUSD – like the USDJPY – is more contained in trading today. The USDJPY is remaining within the range from yesterday’s trading, and so has the GBPUSD (see blue box in the chart below).
GBPUSD trading in a range.
Looking at the hourly chart, the high for the day has been contained by recent highs and also near the 38.2% of the move down from the December 31 high at the 1.52569 level. There is a lid there.
On the downside,the low off the announcement found buyers near the 100 and 200 hour MAs (blue and green lines). It was also just above the lows from yesterday’s trading. Traders seem to be happy with trading the range, with a break likely to lead to more momentum.
Is it a calm before a storm? Is the US dollar a better place to be given the turmoil and uncertainty in the UK’s European neighbors? It would seem to make sense. The price action so far, as been more cautiously neutral, but a move below the MA (at 1.5162-75), might trigger some energy in the favor of the greenback. Key level. PS the EURUSD is coming under increasing pressure which is dragging the GBPUSD down.
