GBPUSD stays near session highs

Technical Analysis

Author: Greg Michalowski | gbpusd

GBPUSD is the biggest mover today

The GBPUSD trades just off its high level of the day at 1.29803. The pair is up nearly 100 pips on the day or 0.75%. The pair is also the biggest mover of the day as the GBP is the strongest currency, while the USD is the weakest of the majors.

GBPUSD is the biggest mover today  
Technically, the price is just above its 200 hour moving average at 1.29761. For the day, the price extended 
  • Above its 100 day moving average at 1.29416, 
  • It's 100 hour moving average at 1.29516, and
  • Its 50% retracement at 1.29583 (and trendline near that level on the hourly chart below).
Each level increases the bullish bias for the pair.  

For the week, the price is still below its last Friday closing level at 1.30447. The high price for the week was on Monday at 1.3053. The low was reached just yesterday at 1.28477.  

The sharp move higher today was helped by better PMI data at of the UK. The manufacturing index rose to 51.9 from 49.7. Getting back above the 50 level gave buyers more confidence. Dollars selling today is also contributed to the pairs move to the upside as well as more bullish technical moves.

GBPUSD on the hourly chart.
For the week, the pair has had an impressive run higher in trading today (and off the low from yesterday), but it still remains below levels from earlier in the week.    Nevertheless, movements above technical levels like the 100 day moving average at 1.2941, the 100 hour moving average at 1.29516 and more recently the 200 hour moving average at 1.29761, has given buyers more control into the weekend.  

Having said that, neither the buyers nor the sellers are really winning near the middle of the range. Nevertheless for buyers today, it would take a move back below the 100 hour moving average and 100 day moving average, to weaken the technical picture.  
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