There is some barb wire left ahead
The GBPUSD made a break for more bearish freedom (see prior POST) - rising above the:
- Swing lows and highs between 1.4351 and 1.4361.
- 100 bar MA on the 4-hour chart at 1.43678 (first time above since December 15)
- Topside trend line that connects the recent highs (at 1.4394)
The next level of barbed wire comes against the 38.2% retracement of the move down from The December 24 high. That level comes in at 1.4408 (see chart below). The pair has been imprisoned in a bearish environment since the peak on December 11. The move lower totaled 1160 or so pips in a little over a month. The correction higher is still well contained versus that move, but the break higher is an attempt to extend further...
Earlier today, the pair tested trend line support at the lows for the day. The pair also tested and held near the 200 hour MA (see green line in the chart below). SO it had some technical support for the move higher.
Traders will be eyeing the 100 bar MA on the 4-hour chart for support now (what was resistance become support now).
