Buyers are taking back technical levels
The GBPUSD is sharply higher after UK PM May's speech on Brexit today.
The price action has taken the pair from a low of 1.2116 to a high of 1.2346 (230 pips in total). In the process, the price has moved back above the 1.2200 level (was near lows from Dec 27 and Jan 4 weeks) and also above the 100 bar MA on the 4-hour chart at 1.22378, the 38.2% retracement at 1.2287. The 1.2307 to 1.2311 area has been a swing area going back to mid November (see red circles). That is now close support/risk for the longs in the market. Stay above is more bullish.
Targets on a further run up will look toward:
- 1.2380: 50% of the move down from the Dec 6 high
- The 200 bar MA on the 4-hour chart comes in at 1.2399 (call it 1.2400). That is another topside target on increased upside momentum.
Drilling down to the 5 minute chart, the last two moves higher has seen the price dip each time to the 38.2% area (see yellow areas) and hold support. The current leg higher has that 38.2% at 1.2300 area (same support from the 4-hour). That increases that levels importance intraday. Stay above is more bullish. Move below does not necessarily kill the trend but muddies the bullish trend move a bit (watch also the 1.2286 for support - 50% level).