Volatile Moves In GBP/USD: Keep Risk To A Minimum

The GBPUSD fell on the opening, recovered and sold off again. The pair continues its volatile trade making grasping on to a trend difficult.  Traders should pay attention to technical clues and keep risk to a minimum. IF one of the sharp moves can be gained, find the target and take some profit, as market reverses are pretty deep.

From a technical basis now, the price has been able to remain below the 100 hour MA for the last 6 hours.  The last test took the price right up to the line and backed off. This level comes in at 1.6431 currently and although 70 pips away from the current price, look for sellers against this level today (put a star by that moving average).  Before that level look for sellers against the 100 bar MA on the 5 minute chart at the 1.6397 level.

On the downside, there is an intraday floor developing at the 1.6344 to 1.6352 level.  Five of the last 6 hours has had bottoms in this range.

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