The GBPUSD trades above the highest corrective level since Brexit.
The GBPUSD soared today, continuing the run after the BOEs/Carney's more hawkish comments yesterday. The pair has a 239 pip trading range. That is well above the 100 pip average range over the last 22 days. So the range is extended but the pair is trending too and trends are fast directional and tend to go farther than you expect.
The momentum has also moved away from the 100 week MA and above the swing highs post-Brexit.
Looking at the weekly chart above, the 100 week moving average comes in at 1.3398 (blue line). The swing highs off post Brexit came in from 1.3443 to 1.3532. All of those levels have been breached. The last of which was the swing high from June 29th at 1.3532. That level is now a key support level on dips. Traders will want to see that level hold on a dip.
Above, there is a trend line connecting the highs from July 2014 and the pre-Brexit high in June 2016. That line cuts across at 1.3634 currently. A mvoe above that line and the pair will be targeting the 61.8% at 1.3728.
Drilling all the way down to the 5-minute chart, the breaks above the 200 week MA and the swing levels post Brexit at 1.3443, 1.3477 and 1.3552 can be eyed. The market stalled around the 1.3443 and 1.3552 before continuing the trend back higher.
Intraday there is a little floor being developed at 1.3560-65. The 1.3532 area is a more important level technically for today (the 38.2% is down at 1.3526 so watch that too). Traders will want to see that post-Brexit high to hold. That is the close risk for the bulls/buyers now.
Stay above the 1.3526-32 area, and the bulls remain in firm control. The targets will be the trend line on the 5-minute at 1.3605 currently and then the high at 1.3616. Above that and the trend line on weekly at 1.3634 will be eyed.
Move below the 1.3526-32 area, and that trailing 100 bar MA (blue line in the chart below will be eyed for more corrective potential. The 50% of the day's trading range comes in at 1.34987.
