GBPUSD found sellers, but not until nearly completing the down and up lap

Technical Analysis

Author: Greg Michalowski | gbpusd

Price retraces back to the swing area around the 1.3000 level

The GBPUSD started the NY session running above the 100 hour MA (blue line), and then through a swing area at 1.2999 to 1.3006. The run higher eventually exhausted itself but not until nearly completing the down and up lap near the highs from yesterday at 1.30672. The high today reached 1.30636 before stalling 4 pips short of reaching that high).

Price retraces back to the swing area around the 1.3000 level

The corrective move lower has now taken the price back to the aforementioned swing area at 1.2999 to 1.3006. It will now take a move below that level (and stay below) and then the rising 100 hour moving average at 1.2993 to take more steam out of the pair.  

Of note is the pair (and GBP currency) remains subject to the headlines out of UK on Brexit (and growth/BOE policy implications as well).  That can be difficult.  However, paying attention to the technicals can also be used to gauge the roadmap.  

Of course, with the up and down volatility, that may lead to a price reversals and zigging when you should have zagged, but at least the technicals will help to limit the risk if offsides on your trades.   

For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose