Concept of Final Auction

Take a look at the updated chart of gbp/usd

I mention in my Friday posts that strong bias is building up in the cross, and stops are placed at 1.7003 area, price went to test the stops but spike two pips away from the protection area, and finally breaks the equilibrium barrier, and reached 1.7150 in no time.

Here is the updated chart of Sterling

gbp/usd New money flows.

Here We have seen the strong violation of rotation center, where price spend a neutral days and tells us that that breakout from 1.6972 to high of 1.7040 was the activity of strong buyers and give us hint, that they took the stops both way before marking the price up and usually not every level of price is important for market, But the levels which are important for market, they will protect those areas and strong reason to accept when price broke the psychological barrier of 1.7050 with ease.

Now, that price rallied to new multi year high, exposing another opportunity to see if new fund inflows to get it through 1.7200 barrier.