The GBPUSD is on a run higher in trading today – erasing the declines seen in trading yesterday and into the Asian session today. The pair held resistance against the 100 hour moving average in trading yesterday (blue line in the chart below) at the 1.51675 level, but in the last few hours, the pair has been able to extend back above that key MA level, and is currently making new highs for the trading day. Traders will look toward this level as close support today.

GBPUSD has broken above the 200 hour MA, trend line, 50% midpoint and 100 hour MA in trading today. Stay above is bullish.

GBPUSD has broken above the 200 hour MA, trend line, 50% midpoint and 100 hour MA in trading today. Stay above is bullish.

Another key support level going forward is the 1.5152 area. Since January 6, the price of the GBPUSD has been in a relatively narrow, consolidated trading range (is a low being made against the 1.5000 level? Could be). The high over that period has come in at 1.52728. The low has extended to 1.5033. The midpoint of that move comes at 1.51529. To increase the levels importance, the 200 hour moving average (green line in the chart above) is also currently at the level – at 1.51522.

So for traders long, the key going forward will be to stay above the 1.5152-67 area. If that can be done (risk defining level), the pair can move higher with the next key upside target being a move above the 1.5200 level, folowed by last weeks highs at 1.5233 and 1.5268 and the January 6th high at 1.52728. A move above that level will have traders more confident that a floor might have been reached for the GBPUSD, and there could be a larger corrective move in the pair.

Looking at the daily chart below, a move outside the consolidative range would look toward the 1.5320, 1.54089 and topside channel resistance. At the lows this month, the pair tested the lower channel trend line support and bounced. If the buyers can remain in control, a move to test the topside trend line is not out of the question.

The GBPUSD has been consolidating after a sharp fall.

The GBPUSD has been consolidating after a sharp fall.