GBPUSD retraces previous gains
GBPUSD moved to a session low in London at 1.3620. This is getting closer to the Asian session low at 1.36156. Yesterday’s low hit 1.36108. These are the next negative goals that must be surpassed.
The 38.2% retracement of the move higher from Monday’s low comes to 1.36044 and is another target. The 100 and 200 hour moving averages are almost converging in the 1.3593 area. Going below these levels increases the bearish bias.
Recall that yesterday’s high price reached 1.3700. It was a few pips off last week’s high at 1.3702. The “double top” gave sellers the AOK to push lower.
The uptrend earlier today moved towards those highs, but was only able to reach 1.3679 – still some 21 pips from the high. The buyers inverted the pair at random (indicating that traders are not too sure about the directional bias).
Overall, the price action is volatile, suggesting uncertainty for traders. The higher run may have been inspired by the inability to descend below yesterday’s low during the Asian session. Today’s high seemed to be running out of steam.
The pullback over the past few hours is consistent with some USD strength in the New York session. It will take a move below yesterday’s / today’s low and ultimately the 100 and 200 MA hours to tilt the more negative techniques and come out of the chop.