Stops send the pair higher in the Asian session. The rest of the day has been working back down
The GBPUSD raced higher in early Asian trading in what it is being attributed to stop buying. The pair has been trending to the upside. The the pair had been up for 4 consecutive days and extended above the 1.4000 level in the process.
The run to the upside moved the price up to test a topside channel trendline. Since then, the price has moved back down. The pair has nearly returned to the Asian session low of near 1.4100, completing the up and down “lap” in trading today. The low just reached 1.41036.
A move below the 1.4100 level would have traders targeting the 38.2% retracement of the move up from the February 17 low. That level comes in at 1.4083. Below that and traders will be looking toward the swing area near 1.4058 and the rising 100 hour moving average at 1.40461. The price last traded below its 100 hour moving average back on February 18. That break was catalyst for the start of the four-day run to the upside. PS the close yesterday was at 1.41108. The price is trading right around that level.