Price pushed above trend lines and 100 hour MA today
The GBPUSD has moved sharply higher in trading today and trades near session highs. The pair has been moving up from the start, but picked up steam in the early European session.
Technically, the price rise was helped by moves above trend lines (two of them (see red and green numbered circles), the 100 hour MA (blue line currently at 1.29453) and the 38.2% at 1.29765.
More recently, the price has extended above the 200 hour MA at 1.29973 level but is having some 2nd thoughts against the 50% retracement at 1.30146.
The buyers are taking back control with those moves. Traders who went with the breaks today have been pleasantly rewarded.
Now with the 50% as the next hurdle - after moving 100 pips or so - there is some stall as traders take some money off the table against the midpoint level. A move above however, should see more upside probing with 1.30253 high from last Thursday, and then the 61.8% at 1.30527.
Drilling to the 5 minute chart, there was a corrective run lower after the pair initially moved above the 200 hour MA for the first time at 1.30043. That corrective move took the price to and through the 38.2% at 1.29699 level but only briefly before swinging higher. The rising 100 bar MA on that chart (blue line) will be technical clue on the downside. Stay above on dips and the buyers are still in control.
Recall the price fell below it's 100 day MA yesterday at 1.28756, but the break was quickly reversed. The falls below the 100 day MA in September were also rejected (no closes below the 100 day MA). Going forward, keep that MA in the back of your mind. It remains a key barometer for buyers and sellers in the longer term (not close now).
