Products You May Like
Although the UK is on May Bank holiday and Jubilee holiday today and tomorrow, the GBP is the currencies.
Looking at the GBPUSD, it is a similar pattern to the EURUSD.
Yesterday, the price traded above and below its 200 hour moving average after holding support against the level on Tuesday. Sellers eventually took charge near 1.2577, and pushed the price sharply lower. Unlike the EURUSD (see post here), the pair was able to extend below the 38.2% retracement of the move up from the May 13 low at 1.24705 (the low price reached 1.24578,, but could not sustain the momentum. The price closed yesterday back above that key retracement level.
In trading today, the Asian session saw sideways up and down price action with a late session move back down toward the 38.2% retracement. However once again buyers came in and started to push the price to the upside into the European session.
The European session run to the upside has reached a high in the current hourly bar at 1.25706. It’s 200 hour moving averages moving is moving sideways at 1.2577. Just above that level is the 100 hour moving average 1.25894.
The price has backed off against the high and currently trades back down at 1.2550. The moving averages are giving buyers some discomfort. On the downside watch the 1.2524 level as close intraday support.