GBPUSD consolidates, then surges to highest level since Nov 2011
The GBPUSD has been contained on the topside over the last 2 to 2 1/2 months of trading. Yesterday a play was made to extend higher but failed. Today, the move has pushed above the 1.5778 level after consolidating in a narrow range for much of the trading day (see chart above). Better UK PMI helped push the pair higher.
The price has since moved to a high of 1.5866. The high print going back to November 18th came in at 1.5886. The 1.5886 will be the next target above. Other upside targets include the 1.5924 (50 % of the move down from August 2010 high) and the 200 day MA at the 1.5953 level (see daily chart below).
On the downside, intraday traders will take clues from the 38.2 of the last leg higher today which comes in at the 1.5819 level (see above). Below that the high from yesterday at 1.5795 should hold support if the break is not a failed one.










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