The GBPUSD moved to the highest level since March 9 taking out the high from last Friday at 1.31694 in the process. The high today reached 1.3185, but momentum is lacking.
The price has traded above and below the old high over the last 7 trading hours. You should see a break and run. That is not happening. We currently trade at 1.3153 - below that old high level at 1.31694. Sellers are trying to make a play.
Technically, the price low in the current hour just tested a lower trendline at 1.3146 and held. If the sellers are to take more control, getting and staying below that trend line is the first step. After that a swing area at 1.3104-1.3110 will be eyed followed by the 100 hour moving average at 1.30933.
The price this week has been able to get below that moving average on a number of different occasions, but trading yesterday could NOT close an hourly bar below that level. Get below and stay below is needed to get more sellers involved. Buyers and sellers are still battling.
Looking at the daily chart, there is a key ceiling in the 1.3199 to 1.32116 area. That level corresponds with highs from January and March. The high today at 1.3185 is getting closer to that area and may be a reason for upside reluctance. Nevertheless, the sellers are not really winning either.
The battle rages, but buyers still carry more power.