A pretty good run today. Key resistance
The GBPUSD has made it to a high of 1.4352 (trading there now). The range for the day is 180 pips. The 22 day average is 122 pips. The 1.4351-62 area was swing lows and swing highs going back to January 12.
So we may have extended ourselves to a limit for the day. Let's put it this way, there may be some profit taking from the longs earlier today against this area...
ALthough that may be the case, the move today is nothing to sneeze at AND if it breaks above 1.4362 do not fight it. This area may be a ceiling but this is a trend run.
- The break lower today should have solcited more selling. It did not. Buyers came in.
- The moves above the 100, 200 hour MA showed a reluctance at first (vs the 200 hour MA that is), but then after basing above the 100 hour MA, the price rocketed higher.
- The price did not slow at the trend line.
- We have paused a little at the key ceiling area but not a lot.
So stick a toe in the water for a trade, but the bones of the move today suggest this is more of the real thing this time. So be aware and look for dips to be bought (1.4334 and 1.4316 are support now).
