Correction lower today could not keep the momentum going

The GBPUSD is trading to a new session high and in the process has raced above the 1.2900 area.  Recall that yesterday, the high price stalled at 1.29012. That high stalled at the topside of a channel trend line.  When the Asian session high could only reach 1.29035, and started to come off, buyers turned to sellers, the price fell below a lower channel trend line, and the downside corrective probing was on.

That move lower stalled at 1.2837 which was within 5 pips of the 38.2% retracement.  Not being able to extend below the minimum correction target at the 38.2% retracement, The buyers in play and led to a rotation back to the upside.

The run above the 1.2900 area has led to further buying up toward the high at 1.2946 so far.

Drilling to the 5 and chart below, the pair initial moved lower today and in the proceess moved below the 100 and 200 bar MAs. The bias started to turn at the start of the NY session after a dip below its 100 bar moving average (blue line) failed  (see shaded red area). The rise above the 200 bar moving average then held support against that moving average level. That was the start of the turned back to the upside.

There is a steep trendline which is now holding support.  Helping the bullish cause was the last big corrective move did hold above the 38.2% retracement and the trend line red circled number 3.  Close risk comes at the recent high at 1.29325 below that the corrective low at 1.2925 (red circle 4) if broken could see more downside probing. 

Sterling on the 5 minutes chart

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