Range is only 42 pips vs 22 day average of 94 pips
The GBPUSD is starting the week off with a very slow start. The high below trading range is only 42 pips. The average over the last month of trading is 94 pips. That’s only 42% of the average. Non-trending now, but also is a red alert for an extension (higher or lower) today.
The moves to the downside have found support near a swing area between 1.40758 and 1.40783 (see red numbered circles). Support held where it should’ve held. The price has bounced higher.
The high for the day did extended above another swing area going back to last week between 1.4102 and 1.4112, but the two breaks above that level on the hourly chart failed to ignite more upside momentum. As I type the price has just moved back into that swing area. Getting above should solicit more buying.
When the range is so narrow compared to the average, buyers and sellers are unsure. However, at some point, they get an idea and push it in the direction of the break. For the GBPUSD, that is the dynamic we are looking at (or hoping for) in trading today.
The most recent tilt is more to the upside off of the support buyers (and move back above the 100 hour moving average at 1.40861 as well), but getting above the topside swing area is still the work that needs to be done.
PS the good news for the UK is that they did announce a larger reopening at the end of last week. The bad news is the India variants are popping up.