The selling seen yesterday is being reversed
The GBPUSD fell sharply yesterday on the strong dollar buying.
The jobs report this morning has pushed the dollar back to the downside. In the process, the GBPUSD has moved back within the up and down trading range seen since mid-May between 1.4100 and 1.42193. There were brief moves above and below that “red box” area since May 17, but most of the trading has taken place between those extremes. We are back in the quagmire of the up and down trading range. UGH.
The rise has also taken the price back above the converged 100 and 200 hour moving averages at 1.4160 level (see blue and green lines in the chart above). Those moving averages are now close risk for the buyers. Stay above keeps the buyers more in control. Move below and the up and down tilt, would move back in the sellers favor.
The high from yesterday came in at 1.4203. That is the next target Get above that level and traders will next target the 1.4219 area. That level was the swing high going back to May 18 and also a swing high going back to May 27. On May 31 the price approach that level but found early sellers against it (see green numbered circles).
The high price for the week reach 1.42493. That took the price above the 1.4240 swing high which was the high from February 2021 (and the high for the year). That break failed, and helped lead to the move down on Tuesday and into Wednesday. The level remains a key ceiling area on further upside momentum.