That was quick
The GBPUSD is testing the topside target outlined as an extreme level.
That area comes in at 1.4633-1.4666. The level corresponds with swing
highs (see green circles in the chart below) - the most recent earlier
this month (see daily chart).
The price highs did extend
higher in May in made, but only briefly. The most recent high this month
respected the original high back in February. The high today got up to
1.4671. A day that went 320 or so pips higher from Friday's close,
stopping within 5 pips is pretty good. Looking at the 5-minute chart
below, that move was quick. The next peaks have found sellers - albeit
minor - against the level. You can see the sellers are leaning and so
far, the price is remaining below the 1.4666 level.
problem - for sellers that is - is the 100 bar MA on the 5-minute
chart (at 1.4613 currently) and trend line (at 1.4627 currently) are
holding support. So I have to give the nod to the buyers (the market is
trending today to say the least). They remain in control. But sellers
can define and limit risk. Traders who are long, can take profit at a
target area. So there is a battle.
selling against the level will still need to see a move below those
support levels. If that can be done, more sellers/profit takers may
start to enter.
the traders leaning at the highs have a technical story to tell that I
can see and other can too, but a break above and we should see further
stops with the 200 day MA at 1.4690 another key target.
I have my head down preparing for ACT course but with the GBPUSD at a key level, it was worth discussing.