- GBPUSD bounces off of a upward sloping trendline at session lows
The GBPUSD has returned to the closing level from yesterday at 1.20481. The high price just reached 1.2053. The current price trades at 1.2043.
The move back to the upside in the US morning session started after the pair tested a upward sloping trendline near the low at 1.19627. The rising 200 hour moving average also helped to give traders a level to lean against (green line in the chart above).
After moving back above its 100 hour moving average (blue line currently at 1.1998), there was additional buying momentum.
A swing area between 1.2024 and the 50% midpoint of the move down from the June 27 high at 1.20456 has seen a breach in the current hourly bar. On Friday, yesterday and again earlier today, that midpoint level was broken. So there is some precedent. However, momentum could not take the price back toward the 61.8% retracement target on each of the moves.
Will the buyers now be able to keep the run going?
The next upside target comes against the high from Friday's trade at 1.2063. Above that and the highs from yesterday and today near 1.2089 would be the next upside hurdles. Fail and move back below the 1.20244 could see a rotation back toward the 100 hour MA at 1.1998 (or 1.2000 natural support target).
Helping the GBPUSD run from the low has been heavy selling in the EURGBP (higher GBP). That pair is down testing the low from July 13 at 0.84026. If that low holds, it may also slow the GBPUSDs run higher.
Be aware.
Sometimes the tail wags the dog and the EURGBP seems to be a bigger influence in the GBPUSD pair's trading today.
Trading analysis offered by RobotFX and Flex EA.
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