New cycle high (going back to April 2018) today, but momentum fades
The GBPUSD is chopping near the highs as traders ponder if buying can/should continue.
The pair DID moved to a new cycle highs going back to April 2018 at 1.40973, but has since moved off those levels, and is breaking/testing a trend line currently at 1.4068 (as I type, it is back above after dipping to 1.4062). The move lower stalled ahead of the early European swing low of 1.40581.
With the price action choppy, buyers and sellers are battling and unsure of the next move. When this happens, traders will look for little clues that are accompanied by a little more momentum. Getting below the trendline is a step in the bearish direction, but it has to be accompanied by reaching and breaching the next target (in this case 1.40581).
The same is true at the highs. Getting above the high from yesterday, open the door for further upside. However, the pair could not breach the 1.4100 level, and subsequent highs fell short of the previous highs.
Traders need to recognize the price action for what it is. Right now, it's a battle between buyers and sellers that has both sides looking for clues and breaks.