New low going back to May 14 fails
The GBPUSD moved lower in the European/London morning session and in the process took out the low from last week and the week before. That break should’ve solicited more selling momentum, but when the price approached a lower trendline at 1.4067, buyers leaned and pushed the price back higher. The low price reached 1.40693.
The subsequent rise has taken the price back above the 1.4100 level and the Asian session high for the day at 1.4120. The entire fall has been reversed/retraced. The high price just reached 1.4123.
On further upside momentum, the next target would come in at the 100 hour moving average at 1.41366. The 200 hour moving average is above that at 1.41418. In between sets the 38.2% retracement of the June trading range at 1.41381.
On the downside staying above 1.4100 would keep the buyers more control. Intraday support might show up near 1.4110 as well.
The sellers had their shot. They failed. The buyers will now see if they can build off the reversal and get back above the hourly moving averages