As the EURUSD breaks above the 1.2442 resistance and races to new highs since the 4th of July (well 5th of July), the GBPUSD is also making a new highs. It has taken out the June 20 high of 1.5776 by 1 pip which makes the high the highest since May 22nd (at least on may charts). In the process the price has moved above the 100 day MA at the 1.5745 level. This is now support.
Unlike the EURUSD which is in more open water above the 1.2442 area, there is another key hurdle to surpass for the GBPUSD. The 50% of the move down from the 2012 high comes in at 1.57833 and this – along with the June high at 1.5776 is giving buyers a cause for pause. Expect sellers with stops above. Support on dips should stay above the 100 day MA (at 1.5745) if this break is for real…This is also the 38.2% of the move higher today (at 1.57465 actually).
