Back above broken technical levels
The GBPUSD took a shot at the next downside target at the 1.2844 level (the low reached 1.2848 – ).
see prior post
That target equaled the 61.8% of the move up from the April 21 low. The bounce higher has now taken the price back above a series of broken technical levels including the 50%, a trend line, and the 100 bar MA on the 4-hour chart. That is not a good signs for the shorts. We are seeing some covering. What next? The 1.2900 level should be a level of interest for traders. The low from Tuesday reached 1.2902 and bounced hard. The low before the plunge lower today on the BOE statement and inflation report stalled at 1.29029. The 38.2% of the move down from yesterday’s high comes in at 1.29013.