High price reaches 1.2901 and backs off
The GBPUSD accelerated to the upside in trading today. The most recent run to the topside was started actually on Friday when the price with the above the week highs between 1.2763 1.27723. In the 1st hour of trading today, that area was tested and held which paved the way for further momentum to the upside.
The pair has reached a session high at 1.29012. That level corresponded with a topside channel trendline of the accelerated move higher It also is a nice round natural resistance level for sellers to lean against. The range today is around 130 pips. The average over the last month has been 103 pips. So the market may have been a little extended.
On further corrective action, the lower channel trendline currently comes in at 1.2844. That trend line is moving higher each hour. Below that is the 38.2% retracement of the last trend leg higher from Friday’s low that comes in at 1.2831. The 50% comes in at 1.28092. That correction zone should slow the fall if the trend move higher has more legs.