$GBPUSD moves higher with lower dollar. Tough resistance at the 1.6668-71 level approaches.
The GBPUSD has moved sharply higher with the lower dollar today. The price is approaching a key resistance level however at the intersection of the 100 and 200 hour MA and the 50% Retracements of last weeks sharp decline. That resistance level comes at the 1.6668 to 1.6671 level. This level is the next target for the pair and should provide good resistance/profit taking sellers as the level is approached, with stops on breaks above the key level.
On the downside, the 1.6600 level continues to be a level the market is interested in following. The 38.2% retracement level of 1.6618 will also be a level to watch for support today.
Looking at the shorter term 5 minute chart, the 100 bar MA (blue line in the chart below) is currently at the 1.6601 level and gives another reason for support on dips below. The price originally moved up strongly after using the 100 bar MA as a springboard on the downside in Far East trading. The moving average has followed the trend move higher. A break of it, would be a signal the trend is consolidating and/or possibly reversing.
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