GBP/USD has reversed all its early losses and surged to a fresh session high at 1.5205. A number of of fresh speculative shorts were set this morning with the loss of neckline support at 1.5095 which triggered a head and shoulders top on the hourly charts.
The pattern failed to play out as expected and prices reversed sharply after the poor jobless claims failed to have the anticipated impact. As many a market wag has pointed out, every sunken ship has a chart room…
GBP/USD buying accelerated as prices broke above intraday highs in the 1.5180 area and prices are testing further resistance at 1.5210 at writing. That is roughly 50% of the drop from 1.5350.
