Technical Analysis

The 1.39742 is the 38.2% retracement

The GBPUSD is trading to new session highs and is up testing the 38.2% of the move down from the 2014 high to the 2017 low. What about the October 2016 low?

Back on October 7th, 2016, there was a “flash crash” that took the price quickly lower. On my chart the low reached 1.1650. On Bloomberg, the low reached 1.1841.  Your broker/charts will likely have something different.  Anyway, on that day the price crashed and then rebounded quickly.    

As a result, I choose to think of the January 2017 low as the low for the pair.  That low is the same as what Bloomberg has. It is consistent.

The pair is testing the 38.2% of that move at 1.39742. A move above is more bullish (we are trading 1.3978 as I type).  The next target comes in at 1.4004/11 which are the swing lows from April 6, 2016, and June 16, 2016. Be aware.

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