Hope on Brexit and BOE helped the pair but concerns remain

The GBPUSD has raced higher in trading today after chopping up and down for the last 4 days of trading last week.

Hope on Brexit and BOE helped the pair but concerns remain

That choppy price action saw the pair move above and below the 100 and 200 day MAs (currently at 1.27357 and 1.27158). On Friday, the 100 hour MA caught up to the price and the pair traded above and below that MA as well (currently at 1.27469). The pair closed above the 100 day MA on Friday but below the 100 hour MA. The market was waiting for the new week.

Today's early Asian price action saw the pair move above the 100 hour MA and stay above. That led to more buying as hopes for Brexit increased and BOE's Ramsden said "We are not about to use negative rates imminently".

Technically, the price made its way through the 38.2% retracement at 1.2800. The hi from Friday at 1.2804 and the 200 hour moving average at 1.28312 and 50% retracement 1.28401. Momentum intensified and the price ended up spiking all the way up to 1.29286 (near an old swing area going back to September 9 through September 15) before tiring.

The price has since moved back down toward support near 1.2865. Recent comments from EU's Sepkovic have poured a little cold water on the Brexit negotiations today (no progress on Internal Market bill dispute today), and a PM Johnson spokesperson said there is more work to be done. So far traders are holding onto support near that area. A move below would have traders looking back toward the key 50% of the move down from the September 15 high at 1.28401 and the flattening 200 hour moving average at 1.28312. The GBPUSD as to stay above that area if the buyers are to remain in control today/going forward.

With an oversize 183 pips trading range today (22 day averages 139 pips), the market has reached a battle point where support buyers and resistance sellers can battle back and forth. Buyers have bloodied the sellers today, but the sellers are trying to put up a fight at the higher levels.