Moves above the 1.5200 level
The GBPUSD woke from it's nap and broke above the 1.5175 level where the 100 hour MA and the 50% of the 8 day range (see prior post). That was step one and the price moved to the a high of 1.5210, short of the next 1.52138 upside target. OK.. You might expect that....
The price has come down a bit off that resistance, but now comes the next test. Can the "market" hold a correction AND then take the pair to and through the next targets and wake up the hibernating bear (outside the 1.5243 level).
Looking at the 5 minute chart below, the last trend leg higher has the 1.51847-907 as the 38.2-50% of the move up. This I call the correction zone. If the buyers really love the GBPUSD (they are showing some affection with the break higher from the 1.5175 level) they should find support in this area. The low correction price on the intial move higher stalled at this level. It would make sense to stay above now.
The baby is up. How active does it want to be? Let's play a game little baby... Make the traders happy.
