The GBPUSD traded above and below the 100/200 hour MA yesterday, closing just above the MAs at the end of the day.
In the Asian session today, the price fell back below the 100 hour moving average (blue line currently at 1.3261) and briefly below the 200 hour moving average (currently at 1.32482). However, those breaks were short-lived and the price quickly move back above the 100 hour moving average, and started the extension to the upside after traders based against the 100 hour moving average and pushed the price above the highs from yesterday.
The subsequent run to the upside moved above a swing area between 1.32861 and 1.32913 and has now extended up to 1.3329. The price is currently making new highs in trading at the highest level since Friday. On Friday the high price reached 1.3339. That is the next upside target followed by the 1.33512. That swing area between 1.3339 and 1.33512 is home to swing levels going back to November 11 (see r green ed numbered circles). Above that level and the high from last Thursday (BOE hike rates by 0.15% on that day) will be the next target near 1.3369 to 1.3373.
Close risk now comes at the 1.3286 to 1.3291 swing area (support level). Stay above that level in the bullish run to the upside remain firmly intact. Move below and there is some degradation of the bullish bias.
