Can it stay above the levels
Admittedly, there is a lot to digest in the UK politically and economically as well with Brexit still in the air. However, the lessening of no-deal risk (although who really knows) has the pair making a run to the upside.
Technically, the pair has also made bullish strides today.
Looking at the daily chart, the pair has continued the bullish run started on Tuesday after the failed run below the lower trend line and below new 2019 lows. Technically, the price moved above the top side trendline, the 38.2% retracement at 1.2273 and the August high of 1.23089. We currently trade at 1.2327 after reaching an intraday high of 1.2353. Traders would like to see the price remains above the August high now on the correction lower. If it is broken, that would muddy the bullish waters a bit (with a retest of the 38.2% retracement at 1.2273 in play).
On the topside, the 50% retracement comes in at 1.23704. A swing low from mid July is at 1.23815.
Looking at the 4-hour chart, the picture is similar. The price has moved above that August high and remained above it so far. If it can stay above, the 50% is also joined by a topside trend line in the 1.2370 area.
So buyers are making a play but working back to the old August high. Traders will be watching that area for buyers on a dip. A move below, muddies the water.