Price moves back higher after test of 200 hour MA, stalled intraday correction
The GBPUSD has moved to a new session high after the NY session saw the pair stall the fall against the 200 hour MA (see earlier post). Staying above that 200 hour MA kept the buyers more in control.
The pair is working on it's 4th consecutive hourly bar that is higher. The next key target comes in at 1.4200-1.4203. The high last Thursday reached 1.4203. The high from Friday reached 1.4200 after the run higher on the weaker US jobs report.
Today, the price first extended lower, but found support near a key swing area between 1.4110 to 1.41153. Holding that area gave buyers the initial impetus to take the pair higher. The holding of the 200 hour MA on the correction was the 2nd reason to push higher.
Can the third hurdle above 1.4200 (and stay above) be surpassed? Get above and it opens the door for further upside momentum with 1.42193 and 1.4240 as the next key target. The 1.4240 was the old February 2021 high (old high for the year). Last week, the price extended above that level on Tuesday but only by 9 pips. A rebreak and move above the 1.42493 high would get buyers even more bullish technical confirmation for the GBPUSD.
Risk for buyers looking for more upside this week, would be the 200 hour MA. Traders would not want to see the price move back below that moving average level give the break and the hold in trading today.
