GBP/USD Heads Higher As Stocks Rebound

The stock market rebounded in early trade and the dollar sold off versus the GBP, EUR and CHF.  The USD/JPY remained in a sideways pattern.

The GBP/USD has moved above the highs for the day at the 1.4606 level.  Corrective wave has brought the pair down to test that level.  When it held the support, the price moved higher to a new intraday high of 1.4642.

This progression’s following the steps outlined in the earlier post (click here).  Now, if the price can remain above the 1.4600 level, the pair has a chance to move higher with a target correction moving toward 1.4695, which is the 38.2% retracement of the recent move lower (see chart below).  Note that the activity remains fairly light and subject to stock price movements. So watch the levels closely.

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