Topside trend line stalled the rise
The GBPUSD has been playing second (third?) fiddle to the EURUSD in trading today. Technically, sellers did come in against topside trend line on the hourly chart. The topside trend line comes in at 1.5586. The high for the day extended to 1.5588.
On the downside, the low was halted against the 200 hour MA (green line in the chart above). That MA comes in at 1.55165. The low reached 1.55205.
So we have buyers reacting to the risk defining level below and sellers reacting to the risk defining levels above. Playing the range makes sense as focus is more on the EURUSD. Traders playing the range will likely have stops on a break of the trading range. The pair has been using the 200 hour MA as a ceiling. The break earlier today was the first major breach after a number of tests and fails. A move back below the 200 hour MA has the potential to be a big disappointment for the buyers..
Looking ahead fundamentally, inflation data will be released tomorrow. BOE Carney is due to testify, along with Deputy Governor Sir Jon Cunliffe, on the Financial Stability Report before the Treasury Select Committee, in London. ON Thursday, employment statistics will be released.
