GBPUSD extends toward a topside trendline

Technical Analysis

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Range for the day has reached 120 pips

The GBPUSD has continued the run to the upside seen in the NY session. The range at the start of the NY session was only 50 pips. That range has been extended by 70 pips to 120 pips so far.  Although higher, it is still below the 22 day average of 129 pips (about a month of trading).  

The run to the upside took out the earlier highs for the week between 1.2999 and 1.3006. That break increase the buying momentum.  The run has now taken the pair above the swing hi from September 10 that 1.30339, and toward a topside trend line at the 1.3042 level on the hourly chart above. The high reached 1.3038 so far. 

A break above the trend line will have traders looking toward the 50% midpoint of the move down from the September 1 high to the September 23 low at 1.30777.  

Risk for longs into the new trading week would look back toward the 1.3000 break area.  Stay above, and the buyers hold the control. Move below and the waters are muddy again. 

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