GBPUSD extends to a new high. The buyers are taking their shot.

The new low for the day did not find any momentum

The GBPUSD dipped to new lows as the US stocks were tumbling lower.  That low breached below the early European low of 1.40581, but only made it to 1.40536 before bouncing. As per the earlier post, I commented on the choppy market conditions by saying:

With the price action choppy, buyers and sellers are battling and unsure of the next move. When this happens, traders will look for little clues that are accompanied by a little more momentum. 

The new low for the day did not find any momentum_

There was a a break of the lows, but I would not say momentum followed. The market agreed and the price rotated back to the upside.  

That rotation higher has now taken the price above the high for the day at 1.40973. That is also the new cycle hi going back to April 2018. There has been a little more momentum to the upside with the price high reached 1.41134.  Traders want to see that momentum continue and for the price to remain above the 1.40973 level (that is the best case scenario).  If so, it opens the door for further upside momentum.

If the choppy markets are to continue, failing on the most recent break will be par for the course. If the market is breaking out of the choppy market conditions, traders want to see the price stay above the old high and push higher. The buyers are having their shot.

Invest in yourself. See our forex education hub.

Source link

Categorized as Forex

By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

Leave a comment

Your email address will not be published. Required fields are marked *