GBPUSD coils near the highs

The GBPUSD extended above the swing area between 1.3521 and 1.3528 today.

On the break above, the high from last week at 1.35491, followed closely by the 100 day moving average at 1.3556 were the targets. The first target was broken at 1.35491. The 2nd one was tested but found sellers. The high price for the day reach 1.35557 right near the 100 day moving average.

The subsequent move back to the downside retested the low of the aforementioned swing area at 1.35213 and that too has held.

So, the pair coils near the high, above the swing area below with 1.35213 as the focus,, but below the key 100 day moving average above at 1.3556. That seems to be the levels that will be in play as we head closer to the new trading day. A move lower would next target the 100 hour moving average 1.34975, followed by the 200 hour moving average 1.34590.

On a move higher, the pair will target the 38.2% retracement of the range since the June high at 1.35754 (see daily chart below), followed by the swing high from November 9 at 1.3601. Get above that level and a trendline on the daily chart cuts across at 1.3624.

GBPUSD on the daily chart