The GBPUSD is actually the star performer today, as it is up around 200 pips from yesterday’s closing levels. The price is moving closer to the highs from last week at the 1.5724-37 area. The 200 day MA is also in it’s sights at the 1.5743 level. These are the next targets above for the pair. The high for the day is 1.57116 so far.
Looking at the 5 minute chart, there is little in the way of corrections today. The total range for the day is 243 pips. On June 15, the range reached 251 pips. Prior to that, you have to go back to December 28 2011 for a larger range at 249 pips. In other words, the pair has gone a long way baby today.
The last leg to the upside from 1.5618 to 1.5711, has the 38.2% retracement at 1.56758. The 50% comes in at 1.56648. If the price moves below this area, it would be an indication the longs might be getting out. If it holds, the buyers are still in control. Below 1.5664, the prior high comes in at 1.5648. A move below this level would be further indication of some long liquidation.
Trends are fast, directional and go in larger ranges. The range is large. The trend was fast and directional. The question is, it seems to have done a pretty good job of it already today. Look for sellers against the high with stops on a break above (intraday traders playing the topside range). On a break the month highs would be the next targets along with the 200 day MA at 1.5743.
