Sellers eye the broken 38.2% now
The GBPUSD raced higher today, helped by a break of the 100 hour MA and 38.2% of the September trading range, and a more hawkish BOE.
The run to the upside took the pair on a 139 pip trading journey from the low to the high with virtually all of it to the upside (the low was only 3 or so pips from the close).
The high price today reached the 200 hour MA at 1.3747. The high reached 1.3750 and backed off after hanging near the 200 hour MA for about 4 hours.
The price has dipped back modestly to a swing area near 1.37297 to 1.3731 and has so far stayed above the broken 38.2% at 1.37247. It will take a move below that 38.2% level to give the risk focused sellers near the 200 hour MA some comfort from the trade. Absent that, and the sellers are not really taking much control back at least from a technical perspective and the risk remains for move upside with the 50% midpoint at 1.37606 as the next target.