Buyers remain in control

The GBPUSD has just made another new high for the day in the last hour of trading. In the process, the pair is moving closer to the next upside target at the 1.5425 level. This level corresponds with topside trend line off the most recent daily highs.

Above that level, there is not a lot of resistance (on the daily chart), until the 1.54659 (61.8% from the Dec 16 high). Then 1.54836 which is the low from December 2014.

The pair has a 206 pip trading range for the trend day today. This is well above the 127 pips average over the last 22 trading days. So there should be some slowing of the momentum into the close/into the Far East session.

The largest correction today did take the price below last Friday's high at 1.5351 (the low came to 1.5342). However, selling momentum was minimal (see 1.5351 line in the chart below). The move higher from the low has been at a slower pace but the price marches on (see 5 minute chart below).

Given the big move today, it is natural to expect that if the price were to test the trend line either today or into the new trading session, that there should be profit taking sellers. However, the move today has seen the downward sloping trend line resistance broken, and the price run from there. The 50% of the last move down was also broken at 1.53675 (a risk level now).

Looking at the 5 minute chart below, the 1.53675 level was a low base point on the last move to the upside. Basing from this level increases that levels importance going forward. Traders will be looking toward that level to now provide support. A move below it, does not hurt the bullish too much, but it could force a further corrective move toward the 1.5351 and 38.2% of the days trading range at 1.5335. Staying above each, still keeps the bulls in charge (a move back below the broken trend line on the daily would change the tone - at 1.5320)

Can the price get up to the 100 day MA at the 1.5652 level (blue MA in the chart above)? The price has not been above that MA since August 2014. At 1.5652 (and coming down), a move up to it is certainly a possibility (it was at that level on December 19th that is not too long ago). Look for dip buyers, and then a move above the topside trend line. Today was a big day from a technical perspective. It is time to see if the buyers today, can keep that momentum going.