The GBPUSD has seen down and up and back down trading today. The price low was able to get below a swing low area near 1.1019 on its way to a low for the day at 1.0996. However, momentum could not be sustained as Bank of England bond intervention gave the pair a bit of a boost into the New York open.
On the topside, the high price reached 1.1113. That stalled right near the swing lows and swing highs seen over the last 4 trading days. On Thursday, the low price reached 1.1111. On Friday there was a intraday swing low at 1.1114. On Monday there were swing highs at 1.10106 and later at 1.1110. Today's high at 1.1113 stalled within that swing area (see red numbered circles in the chart above). Buyers had the shot to get above that area. They couldn't do it.
So apart from the dip below the 1.1019 level today, the price is trading between 1.1019 and 1.1114. In between sits the 38.2% retracement of the move up from the September 26 low at 1.10589. The current prices above that middle barometer currently trading at 1.1078.
Look for a break outside of that range with momentum.
- On the topside, the downward sloping 100 hour moving average at 1.1155 and the 200 hour moving average at 1.1191 would be the next upside targets on a break higher
- Move below the 1.1019 level – and stay below - would look to take out the low for the day at 1.0996. Get below that low level and traders would start to target the 50% midpoint of the move up from the September 26 low at 1.09242.
