Some slowing near the highs
The BOE refrain from cutting rates and BOE Carney suggested that perhaps a cut in 2020 is not in the cards. Time will tell of course, but the GBPUSD was supported by the news and in the process pushed above some key technical levels.
Looking at the hourly chart above, the price spiked and then based against a cluster of moving averages including the 100 and 200 hour moving averages and the overlay of the 100 bar moving average on the 4 hour chart. That cluster came in at the 1.30388 to 1.30552 area. Going forward, traders will look toward those moving averages as a risk/bias defining level. Stay above, and the buyers remain more in control.
The price action today with the basing off those MAs sent the price above the next moving average target. The 200 bar moving average on the 4 hour chart (higher green line in the chart above) comes in at 1.30860. The price action traded above and below that moving average over the last few hours. Admittedly, the price did move below that MA line after breaking higher, but the price has not been able to closed below that MA line (or develop much momentum to the downside).
In trading today watch for more momentum below that moving average line to solicit more profit-taking after the sharp run higher.
On the topside, the pair is finding some stall near the Monday high at 1.31042 and the last swing high from Friday's trade at 1.31063. The high price today did extend just above that level at 1.31082, but backed off. A move above that ceiling at 1.3104-08 should solicit more upside momentum.
We currently trade at around the 1.3094 level – between the swing highs and the 200 bar moving average on the 4 hour chart. A little battle is going on around those areas after the sharp run higher. PS the 50% retracement of the move down from the December 31 high (not shown) comes in at 1.31185. Getting above that level, would target a topside trend line at 1.3136 (see 4-hour chart below).
