The GBPUSD moved lower after the budget was released early, but has now moved to new highs.
Technically, the price initially moved lower, but found support buyers rate against its 200 hour moving average at 1.31239. That was above the 100 hour moving average at 1.31145. The price balanced offer that low and as the Chancellor presented the budget, the momentum to the GBPUSD above the 38.2% retracement of the move down from the mid-October high at 1.31855 . Short-term traders will be watching at 38.2% retracement for support.
The high price extended above recent highs including the high from yesterday near 1.3213, the high from November 13 or 1.32134, and the high going back to October 30 at 1.1318. The price moved to 1.3222 before rotating back to the downside.
The current price is back down testing the 38.2% retracement level. Can the buyers hold support here and keep the bullish bias intact at least in the short term? That is what will be decided.
This article was written by Greg Michalowski at investinglive.com.