As a review, I said the following:
At the time, the price was trading at 1.3324.
So what happened?
The price did move above the 1.3338 and the price did move to the swing area high going back to 2021 and 2022 up to 1.3358. The high price reached 1.33585.
The buyers could not take the price above that 1.3358 level. Buyers were seller instead and have now pushed the price back to the 1.3338 level.
So what next?
The 1.3358 level held resistance but does not disappear. In fact, it makes the level even more important going forward.
However, it did give the sellers against that level some control. What do they have to do now?
Getting below 1.3338 is the next hurdle. If they can get below that level it gives them more confidence at least from a short-term trading perspective. Other corrective targets would be near 1.3316 (high from last Thursday) and then 1.32977 (high from last Wednesday (from the Fed day).
Conversely, if the price goes go above 1.3358, don’t mess with shorts of selling. The buyers are in full control. I would expect more upside buying in the GBPUSD.
This article was written by Greg Michalowski at www.forexlive.com.