I wish I saw that ACT level
The GBPUSD was a dog yesterday. Staying in a narrow 60 some odd pip trading range as the EURUSD surged higher (157 or so pip trading range). When one . Moves while the other stay static, that means the EURGBP was on a tear....and indeed it did surge higher.
Looking at the hourly chart above,the price moved above the 100 hour moving average for the 1st time since July 13 (blue line in the chart below). The rally, however, stalled just below the 200 hour moving average (green line in the chart above), and at the 38.2% retracement of the move down from the July 10 high. Those levels came in at 0.70488 and 0.70438, respectively. The high for the day stalled at 0.70447 - between those 2 levels.
The combination of the 200 hour MA and the 38.2% is a fine Attacking Currency Trends (ACT) level, and indeed seller did enter as risk could be defined and limited. Nice level. Sadly, I missed it.
The price is down sharply today as the EURUSD corrects lower and the GBPUSD is higher. The price just fell back below the 100 hour MA at he 0.69748 and has traded as low as 0.69633. That is about 110 pips lower from that juicy level above. The 0.6960 is the lower trend line support. We may may gotten close enough. Close resistance is at the 100 hour MA now (again at 0.6974).
We are not quite back to the very beginning but that move lower was a nice trade for ACT traders who did sniff that one out. Risk defines. Risk limited. Multiple reasons to trade.
