Both the GBPUSD and the EURUSD has wandered higher as the NY day comes toward a close. For the GBPUSD, the price moved above the 100 bar MA (blue line) and trend line resistance on the 5 minute chart, and has moved toward the next hurdle against the 200 bar MA (green line in the chart above). The 38.2% of the days range is at 1.55374 and this too will need to be breached to wrestle further control from the sellers. A failure and move back below the 100 bar MA should dissaude the long speculators.
In the EURUSD, the pair moved above the 100 and 200 bar MA on it’s 5 minute chart and also above trend line resistance. The price is also looking to extend back above the 1.2131 level (50% of the EURUSD lifetime high to low trading range). The 38.2% retracement of the start of the down trend started on Friday, comes in at 1.31469. Jamie speaks of stops at 1.2150.
For each of these pairs, they are coming offf trend like moves lower. Both are well below MA levels (100 and 200 hour) on their respective hourly charts. So although the intraday bias is showing some strength, the buyers must still wrestle further control, by moving above resistance, ahead of falling below the broken support. Traders should keep this in mind as we head into the Asian session.
