Still a modest correction off the highs.
The GBPUSD has extended higher off technical support, through resistance and up to most recent highs on the hourly chart.
Looking at that chart above, early in the London/European session traders leaned against its 100 hour moving average (blue line currently at 1.2929) ,and the price started to extend higher. The 1st hurdle was the topside trend line. The move above that line was retested before the next surge to the upside began (and to the highs).
The run higher, took the price up to the most recent hourly high bars from Tuesday's trade in Monday's afternoon trade. Those levels came in at 1.2969 and 1.29713 respectively. Today sellers leaned against those levels (risk be defined and limited) and the price has corrected modestly off the session highs.
Drilling down to the 5 minutes chart, the move higher today off of support against the 100 hour moving average, has now corrected about 38.2% at the 1.29514 level. It will take a move below that retracement level to give sellers more confidence in the downside. Failure to do that and the risk for sellers is that this is just a normal correction in a move to the upside. So watch that level and then the 50% retracement of the days range at 1.29459 and the rising 100 bar moving average on the 5 minutes chart at 1.29420 (that MA also stalled a corrective fall earlier in the day).
