GBP/USD touches a high of 1.2839 on the day
After testing the 1.2800 handle earlier in the day, buyers are finding some conviction to push the pair higher on the session and price now moves towards testing the 100-hour MA (red line) @ 1.2847.
Currently near-term bias is undefined as price sits between the 100-hour MA and 200-hour MA (blue line). But if buyers are able to keep up with the run today and move above the former, then the near-term bias turns more bullish.
Looking at the bigger picture:
There's also added resistance at 1.2841 from the 100-bar MA on the 4-hourly chart before further resistance is seen around 1.2870 levels. But ultimately, for buyers it is all about taking out the 50.0 retracement level @ 1.2938 and this week's highs in order to establish further momentum to the upside.
Brexit risks are set to come back into the picture in September as we move closer to the October deadline for discussions among EU leaders, so that will be something to watch out for in the coming weeks for the pound.
Support
- 1.2800 (bids, 50.0 retracement level on H1)
- 1.2786 (200-hour MA)
- 1.2750 (swing region)
- 1.2700-10 (swing region)
Resistance
- 1.2841-47 (100-bar MA on H4, 100-hour MA)
- 1.2865-70 (swing region)
- 1.2900 (offers)
- 1.2936-38 (week's high, 50.0 retracement level on H4)
