Staying above the 200 hour MA is more bullish
The GBPUSD is trading near it’s session highs and in the process has moved above its 200 hour moving average at 1.3770. The pair is testing its 61.8% retracement of the July trading range at 1.37802. Buyers and sellers are battling near these dual technical levels, but the buyers are still more in control.
Giving the control to the buyers was earned early in the Asian session. The initial move today was lower. That move took the price of the pair below key technical levels including the 200 day moving average and 100 hour moving average (see yellow area in the chart above).
The low for the day, however, stalled against the high from Tuesday’s trade at 1.36891. Once the price moved back above the 100 hour moving average/200 day moving averages (near 1.3700) the sellers gave up, and the buyers exerted there influence. The price moved higher. The bias shifted from sellers to buyers.
As I type, the pair is now breaking above the 61.8% retracement level. The next target comes in at the natural resistance at the 1.3800 level. The 1.3796 to 1.3800 level is also a swing area (see green numbered circles). Getting above that area opens up the door for further upside.
Close risk now for buyers is the 200 hour moving average. Move back below that level after the break, could/should lead to some liquidation/corrective action on the failure. The 1.3752 area and the 50% midpoint of the month’s trading range at 1.37403 would be targeted on a failure..