GBPUSD break to new 2020 highs runs into sellers.
The GBPUSD trade to the highest level since May 2018 in earlier trading. The move to the upside took out the high price from December 2019 at 1.35139, and the high price from this December at 1.35387. The high price reached 1.3553, and backed off. The new high is the highest level since May 2018.
Drilling to the hourly chart, the price has now dipped back below both the 2019 and 2020 highs. Bearish. The next target comes in around 1.34993 which was the high price going back to December 3. Earlier today, the price based near that level as well. Move below and we could see further selling on the failure of the highs.
A move below 1.3499 will have traders looking toward the high price from December 9 at 1.34772. The 38.2% retracement of the move up from yesterday's low comes in at 1.34485.
Hold support at 1.3499 and get back above 1.35139 and 1.35387 and all is forgiven on the failure, but right now, there is more of a battle going on between buyers and sellers with the failure on the break looming.
