Up 1.91% on the day
The GBPUSD is one of the strongest currency pairs today with a gain of 1.91% (the GBPCAD is the only pair stronger so far today). The pair has a near 300 pip trading range. That is above the 22 day average of 227. The prices up around 220 pips on the day at 1.1763.
Technically, the price has been able to move above and stay above its 100 hour moving average currently at 1.16289. The high price has extended to 1.17886. That high was just off the high price from March 19 at 1.1792. On Friday, the price moved higher to a 4+ day high of 1.19328. That move did get above its 100 hour moving average, but the break failed.
Today, of course, that moving average is lower and an easier hurdle, but technically moving above - and staying above is still more bullish. Stay above going forward would give the buyers more confidence, and give sellers some cause for pause (of the downside).
Needless to say the next hurdle is to get above the 1.1788-92 area. A move above that would open the door for further upside potential with the swing highs from March 20 at 1.18769 and 1.19328 as upside targets. The falling 200 hour moving average at 1.19857 is also a level to aspire towards. Ultimately, if the price can get above the 200 hour MA, the buyers would add to the control bias. Having said that, there is still 200 pips that hurdle. The next step - if the bulls are to take more control - is to get and stay above the 1.1792 level.
PS... Looking at the weekly chart below, the 1.1840 level is a key hurdle on the topside. That level was the 2016 swing low price. Breaking below that level last week took the price to the lowest level since 1985. Getting back above that level is a key upside hurdle for the pair. Keep that level in your mind on further upside momentum.
PSS The 1.19578 level was the swing low from 2019, and will be another hurdle on further upside momentum for the GBPUSD.
