Reverses above and gets kick higher from Haldane comments. 50% retracement and 100 and 200 hour MAs are next targets.

The GBPUSD fell sharply yesterday on the back of comments from BOE Carney and some technical breaks. The price moved to the lowest levels since "snap election day" and also fell below the 100 day MA (see daily chart below).

By the close yesterday, the price had returned to the MA line at 1.26286 and waffled above and below in the Asian session (see 5 minute chart below). The early European session saw a move to new low going back to April 18th) but fell short of the 50% retracement target at 1.25779 (the low reached 1.2588).

When the price started to move back above the 100 day MA, and made new highs for the day (see 5 minute chart below), the sellers turned to buyers and the move back to the upside was on. Haldanes comments goosed the market even higher.

What now?

The high has reached the 50% of the weeks trading range at 1.2701 (the high reached 1.27093 so far). The 100 and 200 hour MAs comes in at 1.2724 (blue and green line in the hourly chart below). Yesterday, the high for the day stalled ahead of those MAs. They also come in right where there were some swing lows on Monday and Tuesday (it was the Monday low actually). So I would expect sellers to lean against them on a test.

Honestly the price can also turn back lower. Getting to the 50% and 1.2700 natural resistance area can start to be a ceiling for the pair. The range is 121 pips. The average is 107 over the last month or so of trading. If the market dips below 1.2774, then 1.2763 (38.2% of today's range), there could be more selling.

When there is a sharp move one way and a sharp move the other way, it can frustrate traders. When you are frustrated, buyers and sellers are both nervous and that can cause choppy price action. By defining key levels you have more of a basis for your trades. If you have a strong feeling one way or the other, the technical levels give you feedback on your feelings.

The 100 day MA was key below. The move below could not be sustained.

The 100 and 200 hour MAs above are of interest to me above. The 50% can also act like a stall point, much like the 100 day MA did below.

IN between those extremes, and the market can chop around.