Above week highs and 200 hour MA
The GBPUSD got a boost from better than expected retail sales, but the price action slowly moved higher, breaking above the 1.2100 level and swing highs for the week in the 1.20968 to 1.21057 (the high reached 1.21135) and the 200 hour MA (green line currently at 1.21082).
The price corrected back below the 1.2100 level as market got volatile just prior to the NY open, but then shot higher and through the 200 hour MA as NY traders entered. The price remains above the 200 hour moving average (at 1.21082). Staying above that moving average gives traders a little bullish bias.
The “not so bullish” bias is that the run higher breached the 50% retracement at 1.21313 and a topside trend line at 1.21335. The price is currently back below those levels. It will take a move above to get more buyers more excited.
Taking a broader look at the daily chart, the GBPUSD is back above the 1.21085 which was a swing low going back to March 14 2017 (not shown), but remains below a broken topside trend line at 1.21876 (currently). The 1.21085 level is the same level for the 200 hour MA. That increases that levels importance on a correction lower (stay above is more bullish at least intraday). On more upside going, the 1.21876 trend line level will be eyed and need to be broken to increase the corrective bullish bias. Overall, however, the trend off the daily is still more bearish (but trying to show signs of life for buyers).
So a step is taken forward for the bulls in the move to new week highs and above the 200 hour MA (and the old low from March 2017 on the daily), but there is work to do to take the corrective action even higher.