The quick move higher in the GBPUSD this morning has retraced around 38.2% of the days trading range. The price is hanging around the level which is also near the high from yesterday’s trading. The price sits on the fence here with traders wondering if momentum can continue.
The overall bias is positive. The price low today based against the 100 hour MA (blue line in the chart below) and the 38.2% retracement of the weeks move higher. Bullish.
On the daily chart, the price found support against the 100 day MA and trend line support this week. Bullish.
There is the question on whether the momentum can continue? For today, holding against this support area (down to the days midpoint at 1.5843) keeps the bulls in charge. A move below that area would take some wind out of the sails – intraday at least. A move back above the trend line resistance at 1.5867 and then at 1.5885 are the upside hurdles now (see hourly chart).
