The GBP is strongest of the major currencies


GBP is the strongest of the major currencies today

The GBP is the strongest of the major currencies with gains of 1.02% against the EUR and up to 2.51% against the CAD.

GBPUSD’s trading range is 347 pips against the 22-day average of 182 pips (about a month of trading). The GBPUSD is up 1.56% today. The GBPUSD moved up to the 200 hour MA at 1.10424 (the low for the day was at 1.0761). The price is also moving above the 50% retracement of the move down from the September 13 high at 1.10452 and above a downward sloping trend on the hourly chart near the same levels. Traders sit on the fence with the tilt to the top.

GBPUSD is rising above the 200 hour MA / 50% retracement

What about the GBPCAD, the biggest mover of the day?

Looking at its monthly chart of the GBPCAD, like the GBPUSD, the fall on Monday took the price below the lows of 1985 and to the lowest level on record. Looking at the monthly chart, the 2010 low came at 1.48304. That was broken. The 1985 low was at 1.4559 and that was also broken. So moving to 1.40672 was a pretty significant break.

However, the price has now pulled back above those levels with the pair currently trading at 1.51606.

GBPCAD back above the major swing lows of 1985 and 2010

Drilling down to the daily chart, the price decline on Monday fell below a lower trend that helped accelerate a decline. The rebound took the price back above the trend on Tuesday and Wednesday, with price action above and below the line. Today, buyers leaned against the old trend pushing the price higher, and the pair is now looking at a downward sloping upper trend line near 1.53027.

GBPCAD is moving up to an upper channel trend

Drilling down further to the hourly chart, the pair between August 29 and September 23 traded between 1.50184 and 1.53027. On Friday last week, the price moved outside that range and continued the fall on Monday. Since then the price has been snapback within the trading range helped by the sharp move higher today.

Looking at the price, the Asian session lows moved back below the falling 100 hourly moving average (blue line), but then reversed and shot to the top extending back above its 200 hourly moving average at 1.4949 followed by the floor of the upside. and down area at 1.50184. With the current price trading at 1.5159, it is in the middle of the consolidation trading range. The merchants are breathing.

What next?

Turn coin with the price in the middle of the old trading range on the hourly chart, but look for the 1.5018 level to hold support. I would also expect sellers to lean against the 1.5300 level.

GBPCAD is trading back between the up and down trading range



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