Forex technical analysis: GBPUSD reaches a strong resistance area
100 and 200 hour MA at 1.3536-396. Post-Brexit high corrective price at 1.3532.
The GBPUSD has followed the trend in the dollar lower after the lower than expected PPI data today. The run higher has taken the price to a pretty juicy resistance target.
- The 1.3532 is the highest swing high from the post-Brexit trade in 2016 (see weekly chart below)
- The 1.3536 is the 100 hour MA (blue line in the chart above)
- The 1.35396 is the 200 hour MA (green line in the chart above)
The price is trending and running but you wonder if the overhead resistance is a bit too much give the run today....
What we know is risk can be defined and limited against the level. The high price today has so far reached 1.35336. Sellers/profit takers leaned on the first test.