GBPUSD working on day number 11 to the upside

Technical Analysis

Author: Greg Michalowski | gbpusd

Trades to the highest level since March 9th

The GBPUSD is working on day number 11 to the upside. The pair closed at 1.30929 yesterday. The price is currently trading at 1.31426.  Over the 10 day moved to the upside, the price has climbed from a low of 1.25112 the high today of 1.31586.

Trades to the highest level since March 9th
Looking at the daily chart above, the next key target area comes between 1.3199 and 1.32116. Those levels correspond with highs going back to January and March 2020. The hi for 2020 came on the 1st day of the trading year. That level reach 1.3265.  

Drilling down to the hourly chart, the pair yesterday initially tried to get above a topside channel trendline only to fail. The 2nd attempt however was successful in the price has remained above that trendline since that time. The trendline currently comes in at 1.3104. It would take a move back below that rising trend line to hurt the bullish bias. The London session low also comes in near that level.

GBPUSD on the hourly
Drilling even further down to the 5 minutes chart (because you have to), the GBPUSD has tested its 200 bar moving average (green line) at the London lows.  That moving average is currently at 1.3121.  Above that is its 100 bar moving average at 1.3131. The price has traded above and below the 100 bar moving average but getting below it and the 200 bar moving average should solicit more downside probing as the market tires.  

Having said that, the buyers remain in control. The trend is on day number 11 and  trends tend to go further than traders expect. As a result, you have to let the price action show the way.  Getting below the MAs is step 1 (and staying below BTW). From there, go to the trend line on the hourly at 1.3104.  Those are the minimum steps if the sellers are to take control. ON the topside traders may still lean against the Jan and March highs but with stops on a break above.

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