Intraday technical support did hold and the price raced higher in the GBPUSD
In an earlier post, I outlined intraday support saying:
…, watch the 1.3768 to 1.3775 level. That is home to the 38.2 – 50% retracement of today’s trading range. A move below would also take the price below the swing high from Friday’s New York trade and earlier today near 1.3772. The 100 bar moving average on the 5 minute chart is also within that area.
The price stalled within that area at 1.3773 (see chart above). The price then moved above the 1.3800 level and raced up to a high of 1.3832. The price just reprinted at that level.
If you look at the 5 minute chart, the run to the upside now has the 38.2% – 50% retracement of the last move higher at 1.38026 at 1.38096. The 50% is just above the 1.3800 level which was the first major high stall today. Stay above 1.3800 and the buyers are still in control.
On the topside, the high price from July 16 cuts across at 1.38616 (the hourly chart below). Above that and traders will look toward the July highs between 1.3898 and 1.39094. The 100 day moving average is above that of 1.39210 and would be another key target to get to and through if the buyers are to take more control.
The price of the GBPUSD moved below the 100 day moving average back on June 24 and has remained below since that time. Moving back above that moving average level would be more bullish.