Forex Trading: GBP/USD And GBP/JPY Surge Higher

The GBP/USD moved sharply higher on the back of dollar selling off the weak data and another move through the 1.4350 level which triggered stop buying.  The 1.4350 level was the low price for 2008 reached ironically on the last day of the trading year in 2008.  The stops moved the price up to an intraday high of 1.4410.   Since then the price has moved back down below the key level, indicating that the market may not be fully committed to the move. 

While the GBP/USD moved higher, it was helped with some covering in the GBP/JPY as well (this contributed to the gains).  The pair moved up to a high of 129.39, just above the 129.32 level which corresponded with the April 1995 low level.  This was the 1st target level talked about in previous posts on the FXDD commentary pages.  Yesterday the price moved up to a high of 1.4374 briefly, but the move higher was quickly reversed.  This reversal, coupled with the GBP/USD move lower suggests a satisfaction with the upper resistance levels and should lead to a top for the time being.

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