New cycle high (going back to April 2018) today, but momentum fades
The GBPUSD is chopping near the highs as traders ponder if buying can/should continue.
The pair DID moved to a new cycle highs going back to April 2018 at 1.40973, but has since moved off those levels, and is breaking/testing a trend line currently at 1.4068 (as I type, it is back above after dipping to 1.4062). The move lower stalled ahead of the early European swing low of 1.40581.
With the price action choppy, buyers and sellers are battling and unsure of the next move. When this happens, traders will look for little clues that are accompanied by a little more momentum. Getting below the trendline is a step in the bearish direction, but it has to be accompanied by reaching and breaching the next target (in this case 1.40581).