The GBPUSD traded higher in the early NA session and in doing so moved away from it's 200 hour MA at 1.31342. The high price reached 1.3166. That got with 6 or so pips of the swing high from March 31 at 1.31689.
The Brainard more hawkish comments stalled that rise and sent the GBPUSD price lower (higher USD). The pair erased the gains for the day (the close yesterday was at 1.31123). The low on the reversal reached 1.31111.
The price has seen a rebound and now trades between the 200 hour MA at 1.31134 and 100 hour MA at 1.31256. The current price is at 1.3130. A move back above the MAs would muddy the waters again. Move below the lower 100 hour MA now (and stay below) would give the sellers more control.
Needless, to say the volatility is elevated as the markets react.
A quick look around other markets:
US stocks are mostly lower
- Dow industrial average is trading marginally lower by five point -0.01%
- S&P index is -16.5 points or -0.36% at 4566.50
- NASDAQ index is down -187 points or -1.3% at 14344
- Russell 2000 is down -24 point and points or -1.19% at 2070.55
In the US debt market, yields are surging to the upside:
- two year 2.516% +9 point to two basis points
- 10 year 2.545%, +14.8 basis points
- 30 year, 2.578%, +12.0 basis points
The 10 yield is looking to test the high from last week at 2.557%