The story seems largely the same vs. yesterday’s analysis for the GBPUSD (See: Forex Technical Trading: GBPUSD bearish (but just barely) but more to prove ). However, there is a look toward a more bullish bias for traders today.
The GBPUSD has a better tone today.
The pair has been chopping around in a non-trending range but is extending higher in early NY trading and trades up on the day.
In addition to being up on the day, the pair has moved
- back above the 1.6000 level which is the 50% of the move up from 2013 to 2014
- Above the 100 hour MA (blue line) which is also at the 1.6000 level.
- Above topside trend line connecting recent highs.
The pair does remain below resistance at the 200 week MA at the 1.6020 level (not shown), and the 38.2% of the move down from the October 28th high (see hourly chart above) at 1.60227. A move above these resistance level should have the the pair looking toward the 200 hour MA today at the 1.6045 level.
Bias higher. Risk against 1.6000 area (we should not trade 1.5995). I like the buy side.