GBPUSD trades up and down near new cycle highs

Technical Analysis

Author: Greg Michalowski | gbpusd

Topside trend line on daily at 1.4050

The price of GBPUSD 1.4051. That was just above a topside trend line connecting highs going back to December 2020 and was good enough to reach a new cycle high going back to 2018. That trend line cuts across at 1.4050. It will take a move above that line to solicit more buying.  

Topside trend line on daily at 1.4050
Looking at the hourly chart, the price action has been up and down and back up again. The low for the day, was able to extend back below the 1.4000 level but did stall in a swing area between 1.39799 and 1.39555 (see green numbered circles)  That swing area is a bit wide but it defines a ceiling and floor over the last three days as the price moved up and probed higher levels.  

At the top, the high today stalled near resistance on the daily chart and also a topside trend line on the hourly chart.  That line is moving higher (now at 1.40595). A move to new highs for the day at 1.40514 would have traders looking toward that topside trend line on the hourly.  The combination should give traders cause for pause with stops on a break higher.  

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