Moves back above the 100 and 200 day MA and trend line too
The GBPUSD spiked higher today and in is currently traded near the day’s highs and is testing the highs from last week at 1.3018 (trading there now). The pair most recently broke above a trend line on the daily chart at 1.3000. That is now close risk for the pair. The price just traded to 1.3023 as I type. ON the daily chart, the next target is the 38.2% at 1.30615
Ahead of the longer term correction area is a closer retracement target. Drilling down to the 1 hour chart, the 61.8% of the move down from the April 12 high comes in at 1.3030. That was also a low floor from April 17 (see chart below).
A huge catalyst for the GBPUSD today has been the move above the 200 hour MA at 1.29513, the 200 day MA at 1.29599 and the 100 day MA at 1.2965. Those breaks, took the bear out of market, and forced shorts to cover (and new buying as well – see price action in the yellow area).
The move above the 200 hour MA was the first since April 16. The moves above the 200 and 100 day MAs was the first since breaking below on April 23rd.