Trades at highest level since July 29
The GBPUSD has moved to the highest level since July 29, breaking above the July 31 by at 1.22488. The high price extended to 1.22648 as stops were triggered. In volatile trading the price is back down to 1.2230.
Positive comments from Germany’s Merkel that a solution for Brexit could be solved by the October 31 date has sent the pair racing higher. Merkel made a similar positive gesture on Tuesday as well which sent the pair up to a high of 1.21783 before backing off. Today’s move shot through that level. Traders will be eyeing the 1.2209-11 area as support now (high from August 6 and low back on July 29). The 38.2% of the move down from the July 15 consolidation high on the hourly, comes in at 1.22289.
Looking at the daily chart below, a topside trend line extending down from the June high comes in at 1.2280 today. Move above and the 38.2% retracement of the move down from the June high will be targeted at 1.23077.