GBPUSD trades to new session highs. Moves away from 100 hour MA

Technical Analysis

Author: Greg Michalowski | gbpusd

Low today held just above week's midpoint

Low today held just above week's midpoint

The GBPUSD has push back above its 100 hour moving average (blue line at 1.3800) and is trading to a new session high at 1.3828.  The low today stalled just above the midpoint of the week's trading range down at 1.3772.  The pair is down and back up but the technicals are still in the favor of the buyers (above the 50%, above the 100 hour MA. 

The next target comes against a topside trend line at 1.3845. The the high for the week reached on Wednesday is at 1.3865.  

Close risk now is the 100 hour moving average at 1.3800.  Stay above keeps the buyers more in control.

For the week, the low was reached on Monday after the pair tested the 200 hour moving average (green line in the chart above). Finding support buyers near that level helped to reverse the pair higher and ultimately get above a key swing area (see yellow area and green numbered circles) between 1.3745 and 1.37582. That area remains a key barometer for both buyers and sellers going forward. Stay above and the buyers remain more in control (remember that for next week if there is a corrective move lower).

Looking at the daily chart, the pair this week the pair moved to the highest level since April 2018. There is room to roam with a topside channel trendline cutting across at 1.3980 (and moving higher  - think 1.4000).  Stay above the aforementioned 1.3745 to 1.3758 area keeps that target area alive.  

GBPUSD on the daily chart

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