Trades above 50% retracement.
The GBPUSD moved to the highest level since March 24 week and in the process stays above a trend line on the weekly chart at 1.3135 and has also been trading above and below the 50% retracement of the move down from the 2018 high. That level comes in at 1.3167 (see weekly chart below).
Drilling down to the hourly chart below, helping the bullish bias today was the bounce off the rising 100 hour moving average at the session lows. That bounce, gave the buyers to go ahead 2 push the price back to the upside. It also increases the importance of the 100 hour moving average going forward. That moving average comes in at 1.31387 which is just above the trend line on the weekly chart at 1.3135. So that area is important in trading today.
PS note the 100 hour moving average is moving higher at a pretty decent clip.
The market is keeping the idea that the Tories will take enough seats in the Thursday elections to give Boris a majority. That would be positive obviously for a clean Brexit and the GBPUSD (at least initially). The people must still go to the polls though. So although higher, the GBPUSD price action is still somewhat cautious and can be two-way.
