Gapped lower. Shot higher and trading around the day's midpoint
The GBPUSD gapped lower, trading at the session lows in the first hour of trading. The run to the upside, stalled ahead of Friday NY session highs at 1.3515 and 1.3521. The high price today reach 1.3512.
The price has corrected back toward the mid point of the day's trading range at 1.34681. That is also near the closing level from Friday's trade.
Over the last few hours the price is also traded below the 100 hour moving average (blue line in the chart above) currently at 1.34739. That moving average seems to be acting as a ceiling – at least for now.
Like the EURUSD which is also been confined over the last few hours, something has to give way. Does the selling dry up? In which case we see a move above the 100 and 200 or moving average of the five minute chart at 1.34739 and 1.34828 respectively. Or do we see more momentum to the downside below the 50% retracement of 1.34681?
As time goes by, traders will become more anxious to make a move. As mentioned in the earlier post, today is a big day for Brexit negotiations. So it might be the headlines that kick the can either sharply higher or sharply lower.
