February 8, 2023

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GBPUSD moves back below the previous highs for the week after spike higher

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GBPUSD high stalled ahead of last week’s high

The GBPUSD has retraced back down to (and below) the highs from earlier in the week. The Monday high reach 1.39314. The Wednesday high reached 1.39257. The high from yesterday after the BOE rate decision reached 1.3940.

GBPUSD high stalled ahead of last week's high

The reactionary high after the employment report raced up through those levels to a high of 1.39714. That high was short of the high from last week which came in at 1.39759.

The subsequent move lower has now taken the price to a post employment low of 1.39198.

If I were to look at the price action going back to mid April, the area between 1.38346 and 1.39394, has encompassed a lot of the choppy trading. The fall off the high did take the price back into that range (at the lows), but as I type the price is back above that “red box – upper yellow area.  

Should the price start to reenter that “red box” we could see more selling (back toward the 100/200 hour MAs at 1.3889 area?).  Hold…. and the buyers still are more in control technically.  

It is Friday. We just got a quirky number. The GBPUSD hasn’t been the most cooperative pair technically as traders chop the pair around (mostly).  

The initial reaction into the NASDAQ is losing some of the luster. Analysts are looking to pump holes into the report/rather than believe it.  The dollar moved lower, but we are seeing a rebound.  Yields have trimmed the initial declines. Gold is off highs as well.  

Below are the ranges and changes. 

USD is off the lows

This is how the changes looked shortly after the report. 

The change shortly after the report.

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