BOE Carney is saying that the “Rate increase case has become more balanced” and that low risk for too long encourage other risks. His comments – along with the expected sharp decline in Durable Goods – is helping to send the GBPUSD higher. The pair is back up testing and moving above the broken 200 hour MA (green line in the chart below at the 1.6322 level) and underside of the broken trend line (see chart below). A move above these level will next look toward the 100 hour MA (blue line in the chart below) at 1.6351.
The GBPUSD low today bottomed near the 50% of the move up in September (see chart below) at the 1.62867. The low from September 5th (the Friday before the Scotland “Yes” poll that gapped the pair lower on Monday) was also tested at the 1.62788 (the low today comes in at 1.6275). This is a good place for the pair to have bottomed. Look for buyers on dips (or on a break above the aforementioned upside targets). The bias is turning around off of that nice low.
Technical Analysis: GBPUSD moves back higher on Carney comments. Above 200 hour MA at the 1.6322 level now.
Looking at the 5 minute chart the 1.6303-1.6315 area is a dip area which will test the “will of the buyers”. If the buyers are happy to call the lows “the Low”, there should be buyers in this area today. It is where the 200 and 100 bar MA is found on that chart and also has the 38.2-50% of the sharp trend like move higher on the comments. This is now the RISK area (bullish).
If the buyers are to remain in control. Look for the yellow area to hold support.