Moves above the 2010 low at 1.4227
The GBPUSD is trading to new session highs and in the process has moved above the 1.4227 level - the low from 2010.
Looking at the hourly chart, shows the extent of the recent declines. Typically, it is hard to throw all that bearishness out the window - after all the move was for a reason. However, that does not mean the price cannot retrace. How much depends on the levels that can be breache.
The pair is currently testing the topside trendline connecting the most recent highs at the 1.4243 level. A move above opens the door for a move toward the 200 hour moving average (green line in the chart above - that MA is moving lower). . Above that the 1.4351 – 61 area will be target and then the 1.4408, which is the 38.2% retracement of the move down from the December 24 high.
The risk scenario for the longs now, is for the 100 hour MA to hold support on a correction at 1.4213. Stay above and the break out above the 100 hour MA gains some traction.