Up and down price action this week
The GBPUSD has had an up and down week of trading. The pair skimmed along low levels on Monday Tuesday and Wednesday near 1.3400, and moved two highs on Thursday and again today. The highs stalled near a swing area between 1.3503 and 1.3513.
In trading today, the price high was near the week's high extreme and the price low was near the low extreme.
In between sits the converged 100 and 200 hour moving averages near 1.3456. That is where the price currently trades. If you can't go higher and you can't go lower, sitting in between sounds like the neutral place.
However, we know that the price will eventually figure out its way (and extend one way or the other).
Fundamentally, there is some expectations that the BOE will be tightening policy sooner rather than later (December?). BOEs economist Pill spoke of that earlier today. However, there is the USD strength and concerns about the European Covid spread which is helping to put a lid on the currency.
The EURGBP, on the other hand, has seen a sharp move to the downside this week (although it is consolidating over the last 3 trading days).
The ECBs Lagarde is not in any hurry to raise rates and that is keeping the pressure on the EURGBP.
Looking at the daily chart below, the pair is finding some support near a swing area between 0.8380 and 0.8415 (see red numbered circles going back to December 2019 to February 2020)
