GBPUSD Retreats From Daily High, Stops at 50 Hour MA
GBPUSD turned sharply lower at 1.2131 after the pair rejected at 1.2172 the daily high. The pair last week got a boost from the UK Retail Sales which rose 0.2% m/m in July beating forecasts, suggesting that the British economy is in better shape than investors feared.
GBPUSD stopped at 1.2124 the 50 hour moving average after the sharp drop of 45 pips the last hour. On the upside immediate resistance now stands at 1.2272 the daily high while more offers will emerge at 1.2383 the high from July 27th. Intraday traders can enter a long position if the pair breaks above 1.2172 daily high, targeting a break above 1.22, a stop order should be activated at 1.2124 the daily low. Short positions targeting below 1.21 should place stop loss orders at 1.2124. The recent correction from daily high cancels the recent positive momentum for the pair and now only a move above 1.2272 can attract more bids.