Longs not feeling so well. Sellers are happy.
The GBPUSD has now traded below the 1.3000 level for the first time since August 17, 2016. For the day, the GBPUSD has traded 4 different "big figures" (1.2900, 1.3000, 1.3100 and 1.3200). THe high was at 1.3246. The low so far is 1.2997. The range is 247 pips which is the highest one day trading range since July 15th.
Looking at the daily chart above, since Brexit, most of the trading was down above the 1.3054 area. Today that level was broken (helped by Hammond headlines from earlier). On the hourly chart below, the area also corresponded with a lower trend line. Honestly, I firmly expected that level to have held support because of the technical significance.
However, if a key level does not do what it should do (i.e, hold support) you don't mess with it. You get out. That is what traders did and you can seen the quick selling below the trend lined on the hourly chart. Traders sold first and asked questions later.
So, we are back below that key line in the sand as we head toward the close and the weekend. The price does remain within the box that has characterized the trading since Brexit, but the sellers are more and more in control. Buyers will have to take the price back above the 1.3054 level to change the tide (once again).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
