Broke to new month highs but runs into trend line resistance and backs off
The GBPUSD moved above the the July high earlier today (high was at 1.3125). The price also moved above an old swing high going back to September 22, 2016 at 1.31207 too. Yesterday, the high went to 1.3122 and stalled.
The break higher on the daily chart today, did see upside momentum that saw the price reach a high of 1.3158. That was within 8 pips of a topside trend line at 1.3166 (see chart above). Seller leaned. The price started to come down, and in the current hourly bar, the price has moved back below the 1.31207-25 "old highs". That area is now close risk/resistance for the shorts.
Although the pair is still near the high, there are some selling signals.
- Sellers against the key trend line on the daily.
- Moving below the 1.3120-25 old highs.
- We are now negative on the day
Those clues should/could solicit more sellers with close risk against the 1.3120-25 now.