Ups and downs in the pound this week
The GBPUSD has extended to a new high for the week in the current hourly bar. That move took the price above the high from Tuesday trade at 1.1331. The high yesterday reach 1.1324.
The price action this week has been seen a lot of ups and downs. The low for the week was on Wednesday at 1.30038. That low stalled within a swing area between 1.3003 and 1.3012 (see lower yellow area on the chart above).
In trading today, the price waffled above and below its 100 hour moving average (blue line in the chart above) without much attention being made to the moving average. However, after testing its 200 hour moving average and 50% retracement of the range since August 4 at 1.30827, the price extended above those technical levels and ran higher. The buyers/bulls took control.
What now?
The price has move back below the old high for the week after the break above. That could be a worry for the buyers.
Looking at the 5 minutes chart, however, the run to the upside has been trend like. The 1st leg saw a corrective move toward the 38.2% retracement of the trend move higher at 1.30931, reversed back higher and ran to the session highs. The current trend leg to the upside has the 38.2% retracement at 1.31238 and the 50% retracement at 1.31182 (see upper yellow area in the chart below). If the price can stay above that correction zone area, the buyers would remain in control. Move below in the waters become more muddy for the trend move.
