GBPUSD trades above and below the highs from last week

The  GBPUSD  broke to the upside yesterday with the pair moving back above the 200 hour MA with a vengence. The price was also able to extend above its highs from last week between 1.2400 and 1.24103. Getting above those levels gave the buyers fuel for a run toward the 1.2500 level. The high price yesterday reached 1.2498. Today, the Asian session high extended to 1.2500.

Looking at the hourly chart, the trend move to the downside which started in earnest on April 21 has the 38.2% retracement 1.25116. The high price today stalled 11 pips short of that target level.

Higher  inflation  and Brexit concerns have helped to push the GBPUSD back to the downside. The European session low moved back below the swing highs from last week (between 1.2400 and 1.2410). However there has been more up and down trading into the New York session. The high price of the low has reached 1.2435.

So buyers and sellers are battling it out above and below the aforementioned highs from last week. The current price trades at 1.2407.

The best case scenario for the "break" buyers from yesterday would've been to hold the support against 1.2400-1.2410 area. That has not happened. There has been a chink in the armor of the bullish run. However, sellers are finding some stall as well.

Traders will continue to watch the 1.2400 – 1.2410 area as a potential intraday barometer for bullish and bearish. So far the area has seen choppy trading but traders can still look to the area for bias clues.

If the price is able to move back above the 1.2410 area with more momentum, traders can look for a potential run back toward the 38.2% retracement.

Conversely if the selling starts to intensifying, the enthusiastic buyers from yesterday will become disappointed buyers today, and a move back toward the converged 100 and 200 hour moving averages at 1.23128 cannot be ruled out.