Consolidates above the key level
The GBPUSD saw better retail sales today in the UK and the pair was able to push the price above the 50% retracement level of 1.5877 (from the July 2014 high to the April 2015 low). The next upside target on that chart looks toward what was some swing lows and then a swing high at the 1.5940-49 area. In between those levels back in October/November 2014, was a low at 1.5874 - near the 50% level at 1.5877.
SO I guess we can say, the pair is in that congestion area.Stay above and all is ok with the bull world. Move below and there may be some anxiety about the GBPUSD being close to 1.6000 again. It only seems natural.
Looking at the 5 minute chart, the pairs consolidation is most evident. The 1.5877 level has held support since breaking. The 100 bar MA is just above that level. The 50% of the move up today goes down to 1.5866 currently. If support is 1.5877, the ceiling from the chart is pretty strong now too with 6 separate highs in the 1.5923-27 area. As a result, I defer the bias to the buyers- they took the price above the trend line yesterday and above the May high and 50% today - but I would think that the longs have fingers on the TP (take profit) button if the 1.5877 level is broken (and may lean against the ceiling too for now).
