The GBPUSD is trading at a new two month high (going back to November 4. The high price just reached 1.36829.
Looking at the daily chart, the pair is approaching the 50% midpoint of the move down from the June 1, 2021 high to the December 2021 low. That midpoint comes in at 1.3704. Move above that level and traders will start to target the 200 day moving average at 1.37334.
Recall from October, the price moved up to retest that 200 day moving average only to find sellers ahead of that level. The inability to move above that 200 day moving average (near 1.3844) kept the sellers more control and led to the move to new 2021 lows into December at 1.31588.
Since December 20 when the low reached 1.3171, the price has moved steadily to the upside reaching the high today so far at 1.36829 (up 512 pips).
Drilling to the hourly chart below, recall from yesterday the swing low stalled against its 100 hour moving average (see post yesterday outlining the cluster of MA support levels in play) and ahead of its 100 day MA nearby. That helped to give buyers the confidence to push higher, and the price squeezed higher into the close.
Today, the corrective low in the early London morning session found support against the swing high from yesterday's trade near 1.36188. That too was a little nuance, that gave the buyers more confidence. The last three hourly bars have seen higher levels.
The buyers are in control with key resistance up ahead near 1.3704.
