GBP/USD Makes Double Top On Dollar Selling, But Backs Off

The GBP/USD move higher today after correcting modestly lower last night.  However, the momentum to the upside was not able to extend much past yesterday’s high.

The high today came in at 1.6499.  The high yesterday was 1.6496.  The now double top will likely pose some additional pressure for the GBPUSD as longs get frightened by the failure.

On the downside, the 1.6420 to 1.6427 level is initial support. The level corresponds with the 38.2% retracement of the move down from the 2007 high to the January low and roughly with the 100 and 200 bar moving average on the shorter term 5 minute chart.

Overall, the market is consolidating it seems.  The gains from the GBP/JPY has faded a bit today as the upside momentum slowed overnight.  Now the double top.  The correction  is despite some favorable news overnight in the form of higher Construction PMI  (45.9 vs 39.5E) and higher mortgage approvals (43K vs 41KE). This suggests some profit taking at the higher levels.  Expect choppy action as a result.

Subscribe by RSS Subscribe by Email