GBPUSD has been up 7 of the last 8 trading days.
The GBPUSD it is not a given up its gains for the day and trades in the red. The pair closed yesterday at 1.3901. The GBPUSD has been up 7 last 8 trading days. The high today did extend to 1.39508 which was good for the highest level since April 26, 2018.
The fall off the high is looking to test the 38.2% retracement of the move up from the low seen on Friday's trade. That was the last base for the pair as it runs/trends higher. Looking at the run higher since February 4, the pair has taken 3 steps.
The 1st step higher (starting on February 4), corrected toward the 38.2% retracement of the move at 1.36722) and found buyers. Bullish.
The 2nd step starting on February 8 peaked on February 10 and corrected down toward the 50% retracement of that move at 1.3773. The pair based ahead of the level, and ran higher.
The 3rd step (peaking today), is now testing the 38.2% retracement.
When a pair trends, I like to see the 38.2% to 50% hold support on the trend legs higher. If they do hold, the buyers remain in control/the trend is still intact.
Should the 38.2% break, we should see a further probe down toward the 50% retracement level. That is also close to the February 10 swing high the rising 100 hour moving average. So it should the a strong support.
If support holds, getting back above the 1.3901 closing level from yesterday would give buyers some added confidence.