Sellers lean on the first test.
The GBPUSD traded to yet another new session high. This time the pair moved up to “kiss” the 200 day moving average and 38.2% retracement at 1.36961. The high price just reached 1.36961. Sellers leaned on the first test. The price is trading at 1.3689 currently.
The range for the day is now up to 106 pips. That is above the 92 pip average over the last month of trading. At the start of the North American session, the range was only 51 pips. On the break to a new high for the day, the buyers jumped in and sent the price higher.
On a break above the 200 day moving average, I would expect some more covering with the falling 100 hour moving average at 1.37139 as the next target.
Conversely on the downside, looking at the five minute chart below, the 38.2% retracement of the move up from the last intraday swing low at 1.35955 comes in at 1.36577. Before that level watch the last intraday swing low near 1.3670 (move below gives sellers against the 200 day MA more confidence – for now at least).