Holds near the days 38.2% retracement
The GBPUSD - after testing the 38.2% retracement of the days trading range on two separate occasions (see 5 minute chart below) - has moved back above the 100 bar moving average on the 5 minute chart. The correction lower may be over. If the buyers are to resume an upward move, I would now look for the high price from April 17 at 1.50522 be broken (and the price to stay above). That is the close test to see if indeed the correction is over.
Looking at the hourly chart, the bullish bias was reinforced today when the price held support against the 100 hour moving average (blue line in the chart below), and was able to break above the 1.4969 – 80 area (yellow area in the chart below). There is a potential that with the failure to stay above the 1.5052 level the buying will dry up. If it does, look for this recent move off the 38.2% intraday low to slow before that level. Also , there would be more trading back below the 100 bar MA on the 5 minute chart.
If the corrective low is in place, and the buyers are anxious to go higher, the price action should show higher highs. In addition, the 38.2% below should not be broken. If it is, there may be another test of the 1.4980 area.
Will the buyers keep the bid in the market? Can the 1.5052 level be broken. The levels are set.
