64 Pip trading range for the day. Up on the day
The GBPUSD is not doing much in trading today. The range is a whooping 64 pips from the low to the high. That compares with a month average of around 120 pips. So like the EURUSD, there is room to roam still (i.e extend higher or lower).
The pair has been trending to the downside since peaking at 1.5926 in June. Yesterday, the pair breached the 200 day MA (green line in the chart above) currently at the at 1.5438. The 38.2% of the move up from the April low was also broken at 1.5406. The next key target off the daily chart would look toward the 100 day MA (blue line at 1.5268). The price low did not really test that target.
Today, the action is up and down but higher on the day (close yesterday at 1.5359). Looking at the 5 minute chart, the price was tracking an upward sloping trendline. That line was broken, but the price has since recovered back above it (currently at 1.5387). The 100 and 200 bar MA come in at 1.5389 and 1.5378, respectively. IF the intraday bias is higher and that is the path of least resistance for an extension, The risk would be against this area. Hold and that is good news for an extension. Move below and all bets are off (RISK levels for traders).
On the topside, the 200 day MA looks at the 1.5438. That would be the next major upside target. On a break back below aforementioned support and traders will be eyeing a break of the day lows and a low toward the low yesterday at 1.5329.
