Moves above swing area and tries to base.
The GBPUSD tested a key swing low going back to February 12 on Fridays trade and held that support at 1.3775 area. Yesterday, buyers and sellers battle it out with neither winning. The procession was choppy and non-trending.
Today, there has been a more concerted push to the upside. In the process, the price has moved back above the swing low from March 2 at 1.38584. That area also installed rallies yesterday. Looking at the price action today, the price broke above the level, found initial resistance at the 100 hour moving average, and then retested the break level.
Holding support at 1.3858, solidified the area as intraday support. Stay above and dip buyers can hope for more upside momentum. Move below and were back in the lower extreme area that dominated trading yesterday and during most of Friday's trade.
More upside momentum would have traders looking toward the downward sloping trendline at 1.3917 and the falling 200 hour moving average of 1.39241. Above those levels, and the 38.2% retracement of the move down from the February 24 low at 1.39546 would be the next target. Breaking those levels are essential if the buyers are to be taken more seriously after the declines seen over the last few weeks.
Buyers are making a play today above the shaded red area. If the price can stay above that area we should see further upside probing toward other resistance targets.
