Trend line from the weekly caps the topside. Post Brexit high stalls the fall.

The GBPUSD is trading between a key support level and below and at key resistance level above as the week gets off to an up and down start for the pair.

Last week, the pair rallied sharply after more hawkish comments from BOE and Governor Carney. the move took the price above the 100 week MA at 1.3383 currently and a series of swing highs post the June 2016 Brexit vote between 1.3443 and 1.3532. The pair closed at 1.3582 with a high of 1.3516.

Today, the high extended to 1.3618. That high was just above a downward sloping trend line at 1.36145 (and the high from last week at 1.3516). The failure to extend higher helped to lead to some profit taking. Key level holds resistance.

The subsequent fall and low today stalled at 1.3532. That was the highest corrective high after the Brexit tumble back in June (and broken on Friday). Key level on the downside holds support.

We currently trade at 1.3557. The NY session high reached up to 1.3568. Lookng at the 5- minute chart, that high stalled ahead of the 200 bar MA at 1.35706 currently. If the upside is to continue, get and stay above the 200 bar MA and the 50% at 1.3575. The pair does continue to trade above its 100 bar MA (blue line) So the buyers are trying to keep the intraday correction going.

Of note from the 5-minute chart, is the way the 1.3532 level held. This was the key support on the weekly chart, and it was tested on 3 separate occasions and held each time. That increases the levels importance going forward as a risk level for longs. Stay above bullish. Move below, more bearish.

SUMMARY:

So the price action today is up and down with topside resistance holding and lower support holding. The pair is below the days midpoint but above the 100 bar MA. If the price is to go higher from here and attract more buyers, get above the 200 bar MA on the 5-minute at 1.35705 and 50%.

If the price breaks back below the 100 bar MA at 1.3554, we could instead see a rotation back toward the strong support at 1.3532.

PS BOE Carney speaks at the top of the hour.