BOE Carney triggered the break yesterday...
Yesterday BOE's Carney was more hawkish in his comments and that led to a surge higher in the GBPUSD. If you recall the price moved above a trend line on the daily chart and stayed above. In trading today, the price action has been up and up. The price closed at 1.2924 and the low in the Asian session was 1.2921.
Looking at the daily chart below the price has extended above some swing high levels from May (up to 1.2989) and also above the high this month at 1.29768. We currently are pushing the 1.3000 level. The high price has extended to 1.3007 so far.
The high price for the year comes in at 1.30472. The high close for the year comes in at 1.30277. Both are targets on the topside now.
Drilling to the 5-minute chart, although the price action is higher in trading today, the price action has been up and down. What the pair has down technically, however, is follow the 200 bar MA (green line in the chart below) and trend line connecting lows as well (see red circles). There was a dip below the trend line, but the support at the slightly lower 200 bar MA did hold.
So going forward, those levels are close risk defining level for longs. Stay above and the buyers are in control intraday. Move below and we should see a bit more correction/consolidation.
