Push higher stalls
The GBPUSD was the star of the day yesterday after Brexit concerns started to fade. The pair corrected on the FOMC minutes and resumed the rally in early London trading. However, we are seeing more corrective action and the pair is trading down on the day (yesterday closed at 1.4598).
The EURGBP is also ticking up and is putting some pressure on the GBPUSD. The low today tested the March swing low and bounced (see chart below). Markets have turned more corrective.
Looking at the GBPUSD daily chart below, the pair stalled at the 38.2% retracement yesterday at 1.46339 (the high reached 1.46338). The rally took the price above that level but fell short of the Feb swing high at 1.4666 level. The price fell back below the 38.2% and that seemed to start to turn the tide back lower. Support comes at 1.45635 area. The 38.2% of the move up from the low yesterday and the lows from earlier today converge at that area (see hourly chart above).
