Trades at new day highs

The GBPUSD has extended the days trading range and in the process moves above the 100 hour MA.

The range for the pair was a narrow 55 pips as the NY day started. When the NY morning high could not take out the Asia-Pacific high, the price tumbled (along with the overall dollar bullishness at the time). That bullishness disappeared, and when the price extended the days trading range (at 1.4911), the shorts covered and have nearly doubled the range (we are about 99 pips so far). In the process, the price also moved above the 100 hour MA (currently at 1.4907). The 22 day average trading range is about 138 pips currently. So there is further room to roam.

Looking at the hourly chart, the 1.4954 level is the 50% of the move down from Friday's high. This is providing some resistance now. If that level is breached, the 1.4969-77 should provide the next cluster of resistance. The swing high from April 8, the 61.8% and the corrective highs from Friday/Monday were in this area. Above that is what was a "head" from a head and shoulders formation (see chart below). That move, took the price quickly up to 1.5052 but rejected that look above the 1.5000 level fairly quickly. I would expect the 1.4977 level (if reached), to give traders cause for pause.

On the downside now, with the up and down volatility, watch the 38.2% of the trend move higher to hold support now. If the buyers truly loved buying it up they should be happy to purchase at 38.2% off. If not, I would be cautious for more buyers to liquidate.