Forex technical analysis: GBPUSD trades at new session highs.

Technical Analysis

Author: Greg Michalowski | gbpusd

Moves above 100 hour MA but.....

The GBPUSD is making new session highs AND also traded above the 100 hour MA at 1.2881, and 38.2% retracement of the move down from the May 22 high at 1.28765.    The 200 bar MA on the 4-hour chart is at 1.2866.  Levels are being taken out, BUT there is a little pause around the 100 hour MA.   

Taking a broader view on the 4-hour chart, the low on Friday moved to the lows from after the snap election announcement. There was a series of lows in the 1.2768-74 area and the low from Friday reached 1.2774.  The low today could only get to 1.2792 - well above that key support area. The price is also back above the 200 bar MA on the 4-hour chart (green line).  We are trying to get a close above that level now.  So buyers trying to take more control. 

Looking at the 5-minute chart, what catches my eye is the NY low bounced nicely off the 100 bar MA (blue line).  That is more bullish and we have seen a move higher away from that MA. The not so bullish is the battle at the 100 hour MA (blue step overlay on the chart at 1.28815.  There is a one bar spike above so far.  The rest are below.  It seems that there may be some profit taking against the level. 

So the battle lines are being drawn.  The 1.2866 level will be eyed as close support (200 bar MA on the 4-hour chart).  On the topside the 100 hour MA needs to be re-broken and stay broken. 

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