GBP/USD Inches Off Floor in Volatility Trading
By Greg Michalowski | February 08, 2010 | 8:30 AM | 0 Comments
The GBPUSD has had a choppy trading session as the market fights with negative fundamental bias and a market that may be oversold and in need of a consolidation/non-trend period. Last week the price moved from a high of 1.6068 to the low of 1.5533 today. The low from Friday reached 1.5557.
The price is now back above 1.5600, moving above the 100 and 200 bar MA on the 5 minute chart at 1.5583 and 1.5593 respectively. In addition, the price tested the 1.5557 level in the early NY session, falling to 1.5548, but this was reversed. All of which gives a positive bias at least in the short term
Longer term, there is resistance at the 38.2% retracement level of the 2009 low to high range which comes in at 1.5689. Before that look for resistance at the 1.5629/36 area which was the close from Friday and a double top from Friday's afternoon trade. With little in the way of economic data today, trading should continue to remain choppy.
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