GBPUSD edges to multi-week high but may be stalling

[Ben Graham]

The GBPUSD extended to a fresh high not seen since August 18, with the latest peak reaching 1.35558. That move briefly surpassed Friday’s post-employment high at 1.35541, signaling that buyers were willing to test the waters above a prior key resistance point. However, the momentum has since cooled, and the pair has rotated back down.

For now, price action is finding nearby support at the 61.8% retracement of the decline from the September 11 high, which comes in at 1.35397. This level has become an important short-term line in the sand for traders. Holding above keeps the bullish bias intact, while a decisive move back below would suggest a failed breakout and could sap buyer confidence, at least in the near term.

In the bigger picture, the ability of the market to push through Friday’s high but struggle to extend gains meaningfully underscores the tug-of-war between buyers trying to build on momentum and sellers looking to fade rallies. If support at 1.35397 holds, buyers may regroup for another push higher, with the next upside targets eyed at the swing area between 1.3576 and 1.35918.

Conversely, slipping back below that support with momentum would shift the bias more toward the downside and suggest the breakout attempt has lost steam. The cluster of moving averages including the 100-hour moving average, the 100 day moving average and the 200- hour moving average between 1.3446 and 1.34735 would be targets.

This article was written by Greg Michalowski at investinglive.com.