Trades to new session highs but lots of overhead resistance
The GBPUSD is moving toward a cluster of overhead resistance. The price just reached a high of 1.29315. Looking at the 4-hour chart below,
- the 50% of the last trend move down from the July high comes in at 1.2932.
- The high from August reached 1.2935.
- A topside trend line cuts across at 1.2939.
That cluster of resistance should be a tough nut to crack on the first test - with stops on break from the low risk traders.
Drilling to the 5-minute chart sellers will look toward the 1.2910-15 as a downside corrective target. That is the 38.2%-50% of the last leg higher. There was an intraday swing high near the 1.2910 level. Get below that level and the sellers will likely look for more downside..
So testing the cluster resistance. Stocks ready to open.
