The GBPUSD is moving to a new session high and has now seen successive higher highs for 4 consecutive days (and higher lows as well). Price action has been choppy however.
The price spike higher yesterday saw the price extend above the 50% midpoint of the May trading range at 1.24933, but stalled right ahead of the natural resistance at 1.2500. The subsequent fall yesterday took the price back below the 100-hour moving average. The price settled below that 100-hour moving average , but above the lower 200-hour moving average (green line in the chart below).
In trading today, the price moved back above the falling 100-hour moving average and stayed above after testing it in the Asian session. That 100-hour moving average provided a launchpad for the European and early US trading move to the upside. The move higher has been helped by the weaker jobs in the US (initial jobless claims soared to 20-month highs). Technically the price extended above the 50% midpoint retracement at 1.24933. Stay above the 50% retracement going forward keeps the buyers more control going forward.
What next?
The 61.8% retracement of the May trading range comes in at 1.25372. There is a swing area between 1.35367 and 1.25474 that would need to be broken to give the buyers even more control. As mentioned above, the 50% retracement level is a key barometer for bullish above/bearish below. Staying above it is also positive. But moving below would be an issue.
US yields are lower with the two-year down -5.8 basis points and the 10 year down -3.3 basis points. That is helping the bullish tone for the GBPUSD pair.
