GBPUSD buyers trying to make a push toward December highs

The GBPUSD buyers are trying to push the pair above a swing area and into more open space. Having said that, the buyers are “trying”.

The swing area is between 1.2723 and 1.2732 (see red numbered circles on the chart above). Looking at the chart above, there has been a number of spring highs and lows between that area going back to the end of November. Yes, the buyers tried the upside – more specifically on December 14 and 15th – and again this week on Tuesday, but momentum could not be sustained and the price eventually moved back lower.

Today, the buyers are trying for the third time above that swing area. In the short-term, staying above is more bullish, and would have traders looking toward the high for the week at 1.2761. Above that, and the high price from December at 1.27934 would be eyed.

Conversely, if sellers can push back below 1.2723, there could be more disappointment selling, and a probing toward the 38.2% retracement of the move up from last week’s low. That level comes in at 1.2681. The rising 100-hour moving average comes at 1.26778 and that would be another target support level. The low price today stopped near that 100 hour moving averag. E

This article was written by Greg Michalowski at Source