GBPUSD hits the 55 H4MA and needs to find its feet or we’re going south
The cable rally recently hase been very strong but all rallies need to be built on strong foundations or they risk being blown away like a house of cards. The retrace and bounce from 1.3980 this week is a sign of that support showing but we need to see additional support stepping up.
That looks to be the case at the 1.4120 level, and further by the price pulling up at the 55 H4MA just now at 1.4140 (low 1.4136). That’s all well and good but with the bounce from 1.3980 failing to take out the prior high, that leaves things uncertain for direction. If you believe in the rally, the 1.4120 area is what you want to see hold, and it’s a potential point to add tight longs.
The secondary high at 1.4275/80 is now the big level to overcome, and we could be seeing that step down to around the 1.4230 area. Two lines, 1.4275/80 & 1.3980, that’s the ball park.
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