Back toward unchanged levels
The GBPUSD moved up to a topside trend line at the 1.4218 earlier today. The high traded to 1.42229 and backed off. The price is now trading above and below unchanged levels at 1.4172. The current price is just above that level at 1.4177.
Drilling to the hourly, the price spike took out a topside trend line, but stalled above 1.4215. The move back lower has moved back below a lower trend line at 1.4183.
The herky jerky action in the market is hard to predict. The failed break above and the move back lower, has the potential to unwind more of the gains. We can watch the 1.4183 for resistance sellers, but how much "sell" do the traders have? Are traders sitting out to watch the geopolitical developments?
If you are to trade, I still think you have to pick a technical spot and listen to the market's reaction against the spot. For example, stay below 1.4183 and if if does, good. If it does not, go back to the drawing board.
To further confuse the price action, a catalyst for the move lower off the resistance on the daily chart, was a run higher in the EURGBP.
Looking at the hourly chart below of that pair, the price ran away from the 100 hour MA (blue line) and cracked above the 200 hour MA (green line) at 0.87341. The high reached 0.8739 which was just short of the 50% retracement at 0.87404 (see chart below). The price has come off and trades back below the 100 and 200 hour MA lines now.
