Some easing of concessions from the EU helping
The USD is racing lower which is helping the GBPUSD, but there was also the news that the EU may drop 'maximalist' approach on fisheries in UK talks which is helping to propel the pair sharply higher. There is bit of a squeeze higher in the pair and there is room to roam.
Technically, the pair moved above the 200hour MA in the Asian session and stayed above. In the early European session, the price moved above the 1.2239-50 swing area (see yellow area) and the swing high from last week at 1.22966.
The last run has now taken the price above the May 12 high and the pair looks toward the 50% of the move down from the April 30 high at 1.23577. The 50% is a key barometer for the bulls and the bears. Get above and tilts the overall trading bias more in favor of the buyers.
Taking a broader look at the daily chart below, the pair today, re-broke above swing lows from April 21 at 1.2240 and May 7 at 1.22653 respectively. The price traded above and below those levels over the last few weeks, but the momentum above last week, failed. Today is a more serious move.
Also of note from the chart is that if there is good news on Brexit with a global re-opening (including travel), there is room to roam on the topside. The 50% of the move down from the December 2019 high comes in at 1.24611 level. Get back above that level and it opens the door toward the falling 100 day MA at 1.26018 and the 200 day MA at 1.26538. The 200 day MA stalled the rally twice in April.
