GBPUSD spikes back higher after support target hold support

Technical Analysis

Author: Greg Michalowski | gbpusd

Buyers leaned against the 50% retracement/


Buyers leaned against the 50% retracement/_

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.
The 38.2% was broken but the move toward the 50% did find support buyers (with risk being defined against the levels), and with buying into the London fixing, the price has now pushed  back above the close from yesterday at 1.3901. The GBPUSD has been up 7 of the last 8 trading days (today would be up day number 8 on a close above 1.3901). 

The importance of holding the 38.2-50% retracement of the last trend leg higher (from the low on February 12), is that the buyers and trend remains intact. That could change of course (moving below the close again would not be good), but for now, the focus is the high for the day at 1.39508.  Buyers are still in control.   

Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose