GBPUSD breaks away
The GBPUSD based today in the early Asian session near the lows over the prior 3 days. Each of those days saw lower lows, but only by a smidgen each day. A lower trend line just couldn’t be broken with any sort of momentum. When the price stalled ahead of those levels today in the Asian session, the sellers turned to buyers. The shift back higher was on.
That move to the upside continued in the London morning session.
The price into the NY session has been able to extend above the 100/200 hour MAs at 1.3128 (blue and green lines are right near each other). However, the price stalled just ahead of a swing area between 1.3142 and 1.3149 until a few minutes ago.
The price has now broken above that swing area and stops have been triggered with the price moving above the 50% retracement of the last move lower at 1.31534 up to a new high for the day at 1.33696. Risk will be now be at the swing area between 1.31421 and 1.3149 (see yellow area). The next target comes in at the 61.8% retracement of the move down from Friday’s high at 1.3177.
The GBPUSD has had its share of ups and downs. Last week from Tuesday to Friday each day had a different theme (either sharply higher or sharply lower). Yesterday the price moved up and down in a more narrow trading range.
Today the price action is more directional to the upside and with the break of the moving averages, swing area and 50%, the buyers are taking control. Can they keep control and continued to push to the next targets.