GBPUSD snaps back higher as yield declines/technicals push the pair back higher | Forexlive

The GBPUSD has snapped back higher after falling sharply in the European session today. The rise to the upside took the price back above resistance between 1.1991 to 1.2010, and with that break moved right up to retest a cluster of moving average resistance starting with the

• 200 day moving average at 1.20394.
• The 100 hour moving average of 1.20451, and
• the 200 hour moving average 1.2054.

The high price spiked up to 1.20568 before rotating back to the downside. The current price is back at 1.2020 as I type and looking to retest the high of the swing area between 1.1991 and 1.2010. That area will now be eyed as support as ups and downs take over the trading dynamics in the pair. The swing area remains a key barometer in the short term. Stay above is more bullish. Moved below is more bearish.

US yields are lower with the 10 year now down -8.5 basis points. Meanwhile stocks have reversed back to the downside taking the “New Years cheer” quickly out of the market. The Dow is down -0.20%. The S&P is down -0.35% and the Nasdaq is down -0.58%.

Fundamentally, the S&P global manufacturing PMI came in weaker than expectations by construction spending was a bit stronger (although most don’t expect a miracle rebound in construction/housing anytime soon)