Watching the correction on the 5-minute chart now
The GBPUSD opened the week higher, had a minor dip and then raced higher. The catalyst was increased hope for a Conservative victory at the upcoming elections on December 12.
The run took the price up to the 1.29843 level. That extended above recent highs from the end of October early November at 1.29748 but fell short of other swing highs at 1.2988, 1.3000 and the highs high going back to May 14 at 1.30116.
Helping the run higher today early in the session was a break above a trendline connecting recent highs. The price broke above and then retested the line before surging to the upside (see red circle 6). Bullish.
What now?
Drilling to the 5 minutes chart below, the correction off of the high price dipped below the 100 bar moving average (blue line) and 50% retracement of the move higher today but only for a piece of one 5-minute bar. The last test stalled right at the hundred bar moving average.
Keep an eye on that 100 bar moving average and 50% retracement for intraday trading clues. Stay above would be more supportive. Move below and there could/should be more downside probing.
