Range is smaller but buyers are still in full control
The GBPUSD trended higher yesterday. The pair’s range was an oversized 125 pips. The pair did consolidate for the NY session but the decline was modest (relative to the run higher).
Looking at the 5-minute chart above, the consolidation allowed for the 100 and 200 bar MAs to catch up to the price. The pair also ticked below both MAs for 30-40 minutes, but the price spike back above those lines and sellers looking for a top, were forced to cover. The last move lower on the back of the stronger ADP report stalled at the 100 bar MA. If the price is to go lower, getting below that MA and then the 200 bar MA (at 1.130477 – green line in the chart above will be eyed). Absent that, the buyers are still in control.
Taking a broader look at the hourly chart, the pair today moved above a swing area at 1.3047-51 and that helped to push the price higher (see red numbered circles in the chart below). That area will also need to be broken on weakness for the bulls to lose more of the control seen since the pair bottomed last week at 1.2865. The rise off that low has taken the price up about 211 pips and above the 50% and 61.8% of the move down from the April 12 high at 1.29985 and then 1.3030. The lows today bottomed near that 1.3030 area before moving higher.
There is not a whole lot of resistance targets above. The 1.30778 and then 1.3098 (call it 1.3100) trend line are the next targets.