Down and up on the GDP data.
The GBPUSD - like the other pairs - saw a run higher in the dollar (lower GBPUSD), and then a reversal lower on second look (higher GBPUSDU).
The pair low fell to test the underside of a broken trend line, but stalled against it and the low from yesterday at 1.2865 (low reached 1.28715). The price high is testing the 38.2% of the week's trading range.
On more upside, the pair will look toward the 100 hour MA at 1.29344. Above those levels are the 50% of the week's range at .129417, and then the 100 and 200 day MAs at 1.2960 (they are converged at that level).
Recall from earlier this week, the 200 day put a lid on the pair before moving lower and away from the level.
There are signs of a bottom in place, but that does not mean the pair will race higher (can chop some more). Nevertheless, for the day
- The price is higher (closed at around 1.2898 - maybe stay above 1.2900 is a play).
- The run lower stalled ahead of the week low.
- The price is above trend lines for the week
The not so good is the 38.2% held so far and there is the 100 hour MA and we are still below the 100 and 200 day MA.
A bad for bulls and bears is it is Friday and that brings its own liquidity challenges at times.
Pick your spots (maybe 1.2900 is support) and hope we get a correction day. If you hate it, sell vs. the 38.2% (it held once) or the 100 hour MA. Or sit it out.
