200 hour MA will be eyed as support at 1.2908 area
The GBPUSD has had a volatile run of it today after the Bank of England cut rates by 50 basis points after an emergency meeting. The lawmakers added to the stimulus via a massive fiscal package.
Technically, looking at the hourly chart the price fell sharply after the interest rate cut moved the price to a low of 1.2822 (on my chart). The price snapped back, and the the pair has traded mostly above its 200 hour moving average (and 61.8% retracement) in the 1.2906 to 1.2909 area. The price has seen a small dip below those levels in the last few hours, but buyers have reentered. That area is risk for longs looking for more upside. A move below (with momentum) would not look good from a technical perspective.
On the topside, the midpoint of the move up from the February 28 low comes in at 1.29623. That is the next upside target to get to and through. Earlier today the price did spike above that level, but stalled. The high for the day reached 1.29753 before rotating back to the downside..
If the upside momentum is to continue, the high for the day, the 100 day moving average at 1.29857 and the flattening 100 hour moving average 1.3004 will be the next upside targets to get to and through. I would expect sellers near the topside moving averages with stops on a break above.
With the UK announcing a big fiscal plan, it will likely prod Pres Trump (and leaders perhaps) to follow-up. The hints are for a cut in payroll tax as the main idea, but as of yesterday, the plan was not universally supported.
