Forex technical analysis: GBPUSD extends to new highs since Sept 2016
...but, needs to keep the momentum going after a dip back to support
The GBPUSD benefited from better inflation earlier today. The price of the GBPUSD zipped higher. On the way, the price took out the August high at 1.3267 and in doing so, traded at the highest level since September 2016.
That is the good news for the bulls..
The not so good news for the bulls is that the price extended higher and moved above some swing highs from August and September 2016 at 1.3277 on the push to a high at 1.32877. That move failed to ignite more momentum.
Also, the price is back retesting a broken trend line at 1.3237. The price moved above that trend line at the end of July and beginning of August for 3-4 day, but failed and rotated back lower (red shaded area). The move above today is the 2nd try above that level.
The buyers need to show up here (against the trend line at 1.3237), and restart the upside momentum, or there could be more corrective action lower today.