Old year high at 1.34819 tested.
The GBPUSD has moved higher in trading today, and in the process has moved up to retest the old swing high for the year at 1.34816 level. The high for the day has reached 1.3477 and backed off on the first look. In the rise, the pair also moved into a swing area between 1.34719 and 1.35139. That area corresponds with swing highs going back to June 2018, December 2018 and September 2020. Earlier this month the price did breach that area on the way to the high at 1.35387, but that move was turned away fairly quickly (reversed in about an hour).
Drilling to the hourly chart below, the top yellow area corresponds to the swing level on the daily chart (from 1.34816 to 1.35139). On a move above 1.34816, the swing high at 1.34993 from December 3 will be eyed, before 1.35139 and the 2020 high at 1.35387.
On the downside now, the run to the upside today took the price above the 100 hour MA (blue line at 1.33999) and ran higher. Recall from posts on Monday and Tuesday, that level stalled rallies (see blue line and blue numbered circles). It now represents a key level for both buyers and sellers.
The 61.8% provided intraday support on the correction, before moving to the highs for the day. The swing highs from Dec 1 and Dec 2 near 1.34408 are a bias level to eye as well. Stay above all is more bullish.
With the 100 hour MA stalling the rally on Monday, and Tuesday and again today before breaking and running higher, that level is the key level for the bullish or bearish barometer for the market now. Stay above keeps the buyers more in control. On the topside, the swing area on the daily starting at 1.34819 (it was the old 2020 high until this month) is a higher target that gives needed clues for the extent of the bullishness.
Right now, the resistance is holding, but buyers took more control above the 100 hour MA. So fight on.
