The 100 day moving average and retracement level looms up toward the 1.2500 level.
The GBPUSD is moving to new session high after its 100 hour MA and 50% retracement on the hourly chart, stalled the falll at the session lows. Holding that support has given buyers more confidence to take the price back higher.
Having said that, there is some key levels in the topside, which had, and will continue to have some influence on the move back higher.
Looking at the hourly chart above, the pair on Friday and early on Monday stalled it's rally just ahead of its 100 day moving average (currently at 1.2504). Staying below that MA started the correction lower at that time.
That area remains a key level to get to and through if the buyers are to keep and extend the buying momentum today/this week.
PS. Before that level, the 1.2475 level will be eyed. That was a swing high from Friday's trade.
Taking a broader look at the daily chart below, what increases the 100 day moving averages importance is that it is also joined by its 38.2% retracement of the move down from the March 2019 high. Needless to say, sellers leaned against the dual resistance level at 1.2504.
On the downside, however, the low today stalled ahead of the swing low from mid July and swing highs from earlier this month at the 1.23815 level. The low today reached 1.2391.
So although buyers are trying to make a play off support on both the hourly and daily charts, there remains some key resistance above at the 1.2504 area as well (100 day MA and 38.2% retracement).
I will give the buyers the slight edge, but honestly, the tide can easily turn back down too. Watch the 1.2475 for an early clue before the key 100 day MA and retracement levels....If the price can get and stay above, a retest of the 1.2504 seems more likely.
