Move above topside trend line failed.
The GBPUSD is yet another currency pair that is showing a fail on the daily chart. Like the EURUSD, the pair moved above a topside trend line today at 1.4273, only to move quickly back below and leave the failure in it’s tracks. Yesterday that trend line stalled the rally. The high today made it up to 1.4344 – yet another 19 month high.
Where are the next targets?
The 1.4004-11 is a key level below. If you recall, the 1.4004 was the swing low going back to April 2016. The 1.4011 was the swing low from June 2016. Yesterday, the pair raced above those levels on its way to the aforementioned topside trend line (see red circle 6 in the chart above).
The 1.4005 is also now the 38.2% of the move up from the January low. That low (just 11 trading days ago – was at 1.3456. In the 11 days since that low, the price has moved nearly 900 pips higher. That’s a big move in a short period of time.
Ahead of that 1.4004-11 area, is the rising 100 hour MA (blue line in the chart below). That MA (blue line in the chart below) comes in at 1.4051. The price has not traded below that MA since shortly after starting the run higher on January 12.