High for the week tested 61.8% retracement
The GBPUSD is trading marginally lower in early Asian trading. In doing so, the price is trading near – now below – the 50% midpoint of the range since the September 1 high at 1.34816.
The low since September 1 was reached on September 23 at 1.26737. Since that time, the bias has been more to the upside as shorts have been squeezed into the Brexit “drop dead” date on October 15.
That date came and went, with the price racing higher on October 22 to the highest level since September 7. That run to the upside stalled near the 61.8% retracement of the same move down at 1.31730. The high reached 1.31761.
The trading near and now below the 50% now is a barometer for buyers and sellers. If sellers can stay below that level, they would assume more control. Stay above and the buyers/bulls keep control.
Drilling to the hourly chart, the move up from the October 16 low has now fallen below the October 12 high at 1.3082 and tests the October 14 high of 1.30638. The next target comes in at the 38.2% retracement at 1.30536. Below that and traders will start to eye the 100 hour moving average and 50% retracement near 1.3016 area.