The GBPUSD trades to a new high. Approaches key swing area

Technical Analysis

Author: Greg Michalowski | gbpusd

38.2% retracement and swing area between 1.37257 and 1.37316

The GBPUSD is traded to a new high for the day and in the process is looking to test the 38.2% retracement of the move down from the September 13 high at 1.37247 and a swing area (see red numbered circles) at 1.37247 to 1.37316.  The price just reached a high of 1.37249.

38.2% retracement and swing area between 1.37257 and 1.37316_
The move to the upside has been helped by the more hawkish BOE statement (see Justin's post here).  Although policymakers kept the rates and QE unchanged, there was some hawkish overtures within the statement.

Technically a move above the aforementioned swing area would have traders looking toward the 200 hour moving average 1.37488.  

Conversely should sellers leaned against the swing area (risk is defined and limited with stops on a break above), on the downside, a move back below the 1.3700 level would be close risk.  Other risk for GBPUSD buyers would be if the price moved back below the 100 hour moving average 1.36739.

Overall, the low price off of the FOMC decision yesterday did move toward the low price going back to August 19 at 1.36016. The low yesterday reach 1.36088 within about seven pips of that level, but could not get to and through that the key target. The July low, and the lowest level going back to February, comes in at 1.3571. That obviously was also not approached as well but would remain a target going forward if things turnaround and move back lower today..
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