GBPUSD tests 200 week MA

Technical Analysis

Author: Greg Michalowski | gbpusd

GBPUSD trades higher after cracking above the 1.3000 level

The GBPUSD has moved sharply higher today after breaking above its October high at 1.30116. Yesterday that level stalled the rally.  The break above takes the pair to the highest level since May 7, 2019.  Looking at the daily chart, the 1.3175 level is the high price for the month of May. The high for 2019 is up at 1.33795.

GBPUSD trades higher after cracking above the 1.3000 level
Taking a broader look at the weekly chart below, the run higher has now taken the price to a high of 1.3109 and in the process has been able to extend above its 100 week moving average at 1.30464 (blue line in the chart below), and most recently its 200 week moving average at the 1.3100 area (using bid side I have 1.30974.  Note Bloomberg has 200 week moving average at 1.3103). 

Staying on the weekly chart below, a move above with momentum would look toward the 1.3167 level. That is the 50% retracement of the move down from the April 2018 high.  Recall from the daily chart the 1.3175 level is the high from the month of May. So that area between 1.3167 and 1.3175 should be the next target resistance.

GBPUSD on the weekly chart.
Risk now for longs has to be the 100 week moving average around the 1.3150 area.  Stay above is more bullish. Move below and we could see a rotation back down toward the 1.3100-11 area.
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