Something to do for traders
The GBPUSD has extended the range by making the session lows in the GBPUSD. What was 51 pips, became a 56 pip trading range about an 1 1/2 hours ago. A correction to test the 100 hour MA found sellers near the MA level (blue line in the chart below), and now we are seeing the range extend to 67 pips. The average trading range over the last 22 trading days is 109 pips, so there is room to room, but steps may be small. There simply is not a lot of activity.
What next?
The good news for the sellers above is the price is moving away from the 100 hour MA more and more. The prior 4 or so days was testing the waters above the 100 DAY MA. So the sellers are taking more control.
However, let's be realistic and look nearby for the next targets. Also, realize that activity remains limited and overall, the sellers have more work to do to prove total control.
Looking at the hourly chart, the low from yesterday is the most logical target. Then the corrective low from last Thursday at 1.5414. That low was reached soon after the better-than-expected initial jobless claims, and US CPI data A move below that and strong support against the 200 hour MA and the 38.2% retracement at 1.5390-93 currently will be targeted. With that area 50 pips away, and the pair just moving above 60 pips for the day, I would not expect a test soon.
Traders can be happy - at least - that the markets were awaken. However, it does not mean that it is not still tired. So expect slow going to continue.