Pairs break to the upside failed
Coming into the day, the GBPUSD had a range of less than 100 pips. That would have put a weeks trading range at the lowest since 2014. That is a long time ago.
The initial reaction was lower. The lows for the week was tested at 1.27067. At the lows the 200 hour MA was also tested (green line). No break.
There was rumblings about a delayed Brexit past March 29th. That helped send the pair sharply higher and the 100 pip range was extended all the way up to 1.2849 (above the 1.2802 highs). Bulls taking control right?
Not so fast.
The NY session has now seen the pair follow the dollars move back higher. The price has moved back to 1.2775.
Lots of price history of what happened but it helps to outline the skittishness of the market.
- Sellers had a chance to go lower. That idea stalled.
- Buyers ripped the price higher, breaking out in the process. That idea failed.
What do you do next?
It's Friday. Stocks are also whipping around as well. Weekend Brexit news ahead. The technicals are not seeing follow through price action.
The 100 hour MA is support below at 1.27597. The 1.2796-1.2813 is a topside area that is resistance but which way the wind blows? I am not sure.