What to eye now?
The GBPUSD shot higher earlier in the day. The earlier post outlined the key breaks includind the 200 hour MA, the 200 day MA and the 100 day MA. The pair also moved above the 1.3030 level which is home to the 61.8% and near swing levels from April 17th (see chart below).
The high reached 1.3048 which is near an old floor from April 11, 12 and 16 before moving away after a final test on April 18 (see red circles). Since the high the pairs corrective move lower retested the 1.3018 level which was the high from April 23. Looking at the hourly, the yellow area above at 1.3047-515, and the 1.3018 area below defines the range.
Drilling to the 5-minute chart below, the 1.3018 level is clearly defined by intraday traders. It was a peak (at 1), and then became a floor (2 and 3). That is the minimum target that the sellers would have to breach to take some intraday control back from the trend buyers. Without doing that, the buyers are still in firm control.
Below that level, the 38.2% of the day’s range comes in at 1.3003 level. That is also a intraday low. Breaking 1.3018 and then the 1.3000-03 area would be more bearish. The rising 100 bar MA is also near that area.
Until then, however, the buyers are still holding the strongest hand with getting above 1.30515 the next key target level to get and stay above….