The GBPUSD moved higher today – following the path of the USD in the process. The pair extended up to 1.6225 – between an target of resistance outlined in the video done last night for the GBPUSD at the 1.6218 and 1.6231 (CLICK HERE TO VIEW THE VIDEO). The inability to extend above that area, has led to a move back lower. The better initial claims (4 week average down to 287.75) has not helped. Damn the Fed. What do they know.
The GBPUSD on the hourly chart is moving back toward the broken 38.2% retracement area at 1.61693.
Looking at the 5 minute chart below, the pair is testing the 100 and 200 bar MA and looks toward the closing level from yesterday (5 PM ET). The 38.2% of the move up from the pre-FOMC low comes in at the 1.61509. The longs might get more uneasy on a dip below this level.
Let’s face it, the Fed threw cold water on the dollar bulls and in the process, will now make traders question the impact of a better claims number or any better number for that matter. Thanks Fed.
If the dollar is overbought, the GBPUSD should benefit as the UK is running more in sync with the US and they have so far not whined about the currency. Having said that the 1.7200 is not justified. Is 1.6500 justified, or is the 50% and 200 week MA at 1..6000 the place to be? What do you think?
Trying to hold the support against the close.
The GBPUSD has moved toward the closing level from yesterday at the 1.6167 level.
