Support eyed now
The GBPUSD pushed up toward the next target defined by the 1.29768-89 area. That area (as shown in an earlier post), is home to a number of swing levels on the daily chart. Yes, the price moved above that area in the 2nd half of May, but on the corrective move in June, sellers came back in against the area.
The fall back down is getting closer to the broken trend line at the 1.2906 level. I expect buyers to line up against the trend line (stops on a move below).
The move higher today got the catalyst from more hawkish comments from BOE Carney (click here).
Taking a broader view by looking at the weekly chart, the last 9 weeks has seen the pair alternate between up and down weeks. This week is showing more of a break higher. The low last week stalled near the 50% of the move up from the March 2017 low at 1.25779 (the low reached 1.2588). The move higher this week is also moving above swing levels in the 1.2774-91 area. The 1.3047 is the 2017 high. Above that the 1.3330 is the 50% of the move down from the Brexit high (from June 19th, 2016). If the buyers keep the momentum going, that level (longer term) is not all that silly. It will not be a straight line.
