The GBPUSD has successfully broken above a key resistance level at 1.22028 (see green numbered circles), and after some consolidation around this level, it has gained further upward momentum. The highest price so far has reached 1.22409. The 1.22028 level now serves as a crucial support for traders seeking additional upside momentum. Today's low price was recorded at 1.21659, which remains comfortably above a swing area between 1.2134 and 1.21467 (see red numbered circles on the chart above).
The UK has managed to stay relatively stable during recent financial crises. Last week, the GBP fell in response to Wednesday's shift into the USD (and out of EUR), but the low price found support from buyers at its 200-hour moving average. On Thursday, the price briefly dipped below its 100-day moving average (blue step line on the chart above) but was unable to maintain downward momentum towards the 200-hour MA. Consequently, sellers turned into buyers. On Friday, most of the price action remained above the 100-hour moving average (higher blue line), keeping buyers in control.
Taking a broader look at the daily chart, the next key targets come between and 1.2259 and 1.2269. Those levels include the low from January 24, the high from February 3 in the high from February 14.
