With minutes to go in the London session, 33 pips is all she can muster today
It looks as if the economic temperatures have moved back down in the UK today, but the impact from the heat has the GBPUSD market wilting in trading today.
The pair has been one of the bigger movers of late (at least intraday) as a result of election/Brexit uncertainty, BOE surprise vote, Carney's Mansion speech (or delayed speech), Haldanes counter punch on inflation...all added to a hot, volatile market.
Today, the economic temperature has come back down and with it, the pair has EURUSD-itus. That is, the action has died. The GBPUSD is in a 33 pip trading range. That's it. Perhaps traders just want to get to the pub and enjoy a pint in bearable outdoor temperatures after the heat wave of late.
Technically, looking at the hourly chart, the pair is creating an upper downward trend line on the topside. That level comes in at 1.2674. That is also the 38.2% of the move down this week. On a break to the upside (above 1.2674), the 100 and 200 hour MAs come in at 1.2698 and 1.2715 respectively (and coming down). The high from Tuesday stalled against the 100 hour MA (see blue line).
Below, there is a floor at the 1.2653 area. The floor is kind of a random area, but the dips keep on finding buyers there in trading today. The floor is being built. A move below that MA will need to contend with swing lows and highs in the 1.2634 -40 area. The 100 day MA is at 1.2630.
In between the floor and the trend line above, there is a lot of up and down.
At some point, the heat will turn up again and the market will move. Look for the clues from the price action and a move outside of the range.
IN the meantime, to the UK traders, enjoy the cooler temps and the pint of beer.
