The GBPUSD is making new session highs, and – in the process – is taking out the month long highs. The last step before getting to more open road, is the 1.5268-728 highs early and mid- January. The next targets above that would look toward 1.52847 (50% of the move down from the Dec 31 high) and then 1.5318-26. If you use a 5 PM open on Sunday, this is a gap from the 1st weekend of the year (yellow area)..
GBPUSD making new session highss
The pair spent most of the last month between the 1.5050 to 1.5233 area in the month. There was a couple of serious looks below that level, but the lowest low (after the ECB decision) could only get to 1.4950. The most recent push (which started last Thursday and extended to parts of yesterday), was helped by the ceiling against the 200 hour MA (see green line in the chart above).
In the 2nd half of yesterday session, the price moved back above both the 200 and 100 hour moving averages and traders focus returned to buying vs. selling. SEE post from yesterday:Forex technical trading: GBPUSD pushes above the 100 and 200 hour MA)
When the market non-trends/jumps around like it has over the last month of trading, eventually it breaks out. I will expect to see sellers against the 1.5268-72 highs on the first look, but would also expect buyers on dips toward the 1.5200 level (the high yesterday was at 1.5197. The 38.2-50% of the days range currently is 1.5192-1.5204). Since January 22nd there was more time spent below the 200 and 100 hours MA ( green and blue lines). The break yesterday of those MA’s is giving the bulls their shot now to take control and push the market. If corrections can keep the bullish momentum today (i.e. hold the risk level near 1.5200), the upside remains the favored trading bias.