A move above the 1.2110 level muddies the water for the GBPUSD
As discussed in my video from yesterday ("What level is key for GBPUSD through latest Brexit votes"), the 1.2110 level was a key technical level for me this week.
The level represented an old trend line on the daily chart. That line was broken yesterday, swinging the bias back to the downside. There was increased momentum lower earlier today, with the market price bottoming at 1.1957 before reversing higher.
The price has now moved back to retest that old trend line (today at 1.2107). The high for the day reached 1.2105 so far. A move above may not hurt the overall/longer term bearish bias for the pair, but it does muddy the bearish waters a bit and gives the buyers some control.
Drilling to the hourly chart below, the 1.21043-11 is also a swing area from August trading (see green numbered circles). That area increases the 1.2107 levels importance (from the daily chart). You can see why the level/area is important.
A move above will give another reason for the market price to head higher toward a test of the 50% of the move down from last week's high at 1.21334, the 100 hour MA (blue line) at 1.21387, and 200 hour MA (green line) at 1.21923. They are all upside targets on a move above the 1.2104-11 area. Getting above each, makes the water less muddy and gives even more control to the buyers.
If the market does stall here (i.e. below the 1.2104-11 area), traders will need to see a move back below the 1.2063 low from August 20 and then the 1.20408-443 level to increase the bearish bias again. Below that the 1.20139 low from August (old low for 2019) will give sellers further incentive.
Below the 1.20139 level willl have traders looking once again to the January 15, 2017 low at 1.19859 (see weekly chart below). Below that, the trend line on the weekly at 1.1965 will be eyed again (see chart below). The low price today moved just below that level at 1.1958, before moving back higher.
