GBPUSD moves back toward its session highs/high from yesterday. What to look for now?

Technical Analysis

Author: Greg Michalowski | gbpusd

Quick moved to the downside today reversed

The GBPUSD traded sideways in most of the Asian session with the highs from yesterday being respected. The high yesterday reach 1.38327. The Asian session highs came in between 1.38287 and 1.38309 before breaking to the downside. That area remains a key ceiling area to break through now. 

Quick moved to the downside today reversed
The low today reach 1.3766 a few hours after peaking. That low was still comfortably above the rising 100 hour moving average (blue line which is currently at 1.37584 but was lower when the low was reached).  

Staying above the 100 hour moving average, keeps the buyers more control, but it isn't fun for the longs who have to deal with sharp falls back toward the level like we witnessed today.

The price has since moved back up toward the swing highs from yesterday and today between 1.38287 and 1.38327.  The high price just reached 1.38235.  Get above those highs, and the door opens toward the 1.38616 level. That was the swing high going back to July 16. 

For close risk now (for the buyers), keep an eye on the 1.37965 to 1.3804 area. Yesterday on the way to the upside, the price stalled near that area before breaking higher(see red numbered circle one). Today, after breaking lower below the area, the price tried to stay below the 1.3800 area before breaking higher over the last hour or so of trading(see red numbered circle two). 

If buyers  are to stay in control intraday, staying above 1.3796 to 1.38004 will be an important technical clue.  Buyers are more in control.
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