A move will have traders pushing toward 1.3000
The GBPUSD is higher and tests the high of the 2nd Red Box that has defined the range of for the pair over two extended periods (see boxes in the chart below).
Recall yesterday, the price moved outside the upper Red Box on stops to the downside, but rebounded when better non manufacturing ISM data reversed the trend.
Today the action has been up and down, but are seeing more buying over the last few hours. Shorts may be continuing to feel the pain from the inability to go lower in this pair. Later today we will get the latest commitment of traders report from the CFTC. Last week, the shorts were cut but still remain relatively lumpy.
The sellers are so far keeping a lid on the pair (and within the Red Box). A break above, however, will have traders thinking that a run to 113.00 is the next key target.
We can't get above 1.3000, can we? The bulls in this pair are not running at a fast pace, but they are winning the race. Shorts are not having any joy.
If the high does hold, getting below the 1.2936 and then the 1.2900 to 1.2910 area. The 1.2900 is a natural support (today's low stalled at 1.2899), and the 100 hour MA is currently at 1.2910.
