Key corrective target tested
The UK finally go some good news in the form of retail sales today, and the price has moved higher. The move, however, has stalled at the 100 hour MA (blue line in the chart below). That moving average is joined by the 38.2% of the move down from the May 14 high at 1.34199.
To turn the bias more bullish, the MA needs to be broken and remain broken.
Above the level and the pair will look to get above the topside trend line at 1.34375. The 50% of the same move lower at 1.34557 is another key target above. That level is joined by other swing lows from May 15, 16 and May 18th in that area.
Of course that is dependent on getting above the 100 hour MA/38.2%. Right now it can't so buyers may lose there appetite.
A move below the 1.33896 is a level to eye on the downside. It was the low from Monday. A move below may be the nudge the sellers need (and the buyers might not want to see). If broken with momentum, the pair could wander back toward the lower levels.
Taking a broader look at the daily chart, the price yesterday reached a target at the 1.32987. The low yesterday reached 1.3304 and bounced.
That area (around the 1.3300 level) is home to a number of swing levels going back to December 2017. If the sellers win, and that level is broken, the 1.31858 will be targeted. That is the 50% of the move up from the January 2017 low.
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