GBPUSD had a wild down and up day. Volatility to continue as budget speech in progress
The GBPUSD fell sharply in the early London session, moving to the lowest level since mid October 2009 at 1.6166. The low found support against low level in August/September. The lows on August 26th and 27th was 1.6158 and 1.6152 respectively. while the low close from that time period also was at 1.6158 (on September 1st). The level also corresponded with the 61.8% retracement of the move up from the Septmber low to the November high. That level came in at 1.6166. All the levels gave profit takers a reason to enter and that combined with intraday technicals improving, helped push the price back up.
The bounce higher has taken the pair back above the 100 and 200 bar MA on the 5 minute chart and remains above those key moving averages. The two moving averages are at the 1.6272 area this is near high/low “remembered prices” at the 1.6278 level. Look for support against these levels today.
On the topside look for resistance against the 1.6362 level. The 100 day moving average comes in at the 1.6417 level today. This is not expected but with the pre-budget speech in progress the market can get heated. Look for low risk trade opportunities as conditions are likely to be choppy for the time period.
