Pending Home sales were weaker than expectations. That, along with some more Ebola news in the US and lower stocks, may be contributing to a softer dollar. Any “less robust news” out of the US, or declining stocks/increased fears from Ebola spread in the US, will have the market thinking the Fed tilt will be swayed the dovish side on Wednesday.
On Friday the close was right near the 100 hour MA and the 50% of the weeks trading range at the 1.6082-88 levels. The low today came in at 1.6079. So the price is moving away from these levels, and to the upside today. The range is still pretty pathetic for the day at 58 pips (average is 119 pips). So, longs can stay long. The 61.8% of the range last week can no be looked on as support at the 1.61103 and risk. The 1.61509 was near a high and low from last week (sort of made the high island) and is a target area. The high from last week came in at 1.61827. That would get the pair to 103 pips or so for the day. The average is 119 pips. So it is possible to go and test the high, if the trends seen can continue.
GBPUSD making new highs. Extending the small range.