Forex Trading: GBPUSD Continues In Its Consolidation Up And Down Range.

The GBPUSD has now consolidated the move lower for nearly 2 days now.  The price has a floor at the 1.5533/50 region and a ceiling at the 1.5648-59 area.  The consolidation comes after the most recent trend move which saw the GBPUSD move down from a high of 1.6068 to the low at 1.5533. The consolidation/non-trend period is not unusual. It allows the market moving averages - like the 100 hour moving average to start it’s catch up to the market price. Currently, the 100 bar MA is at the 1.5727 and moving lower at a pace of 4 pips an hour.  In 24 hours that would put the moving average down at 1.5633. 

In early NY trade, the market has come in and bought GBPUSD back up from the floor area. This has continued the up and down nature of the pair over the last two days. There should be some resistance at the 1.5636 area where highs and low from the last few days have occurred. Above is the high over the consolidation period at the 1.5658.  Support now comes in at 1.5604 which is the 100 bar MA on the 5 minute chart (blue line in the chart above).  The 1.5596 is the midpoint of the 2 day range and will also be a key level to eye today.

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