GBPUSD higher on the day but below the high from last week

The GBPUSD moved lower in the Asian session and in the process tested the 100/200 hour MAs and the 50% midpoint of the range for 2022 (see blue and green lines in the chart above). The holding of that level gave the buyers the go-ahead to push to the upside. Since then the price has extended further to the upside of the move.,

Into the European session the price remain below the 61.8% retracement of the 2022 trading range at 1.35987. That kept a lid on the pair, but only temporarily.

The break above that level, took the price to and through another swing area near 1.3613 and 1.3618.

The high price for the day reached 1.3637 short of the swing high from last week at 1.36434. The price has moved back below the 1.3613 to 1.1318 level .

What next?

With all the ups and downs of late, the tide can turn quickly. For buyers who continue to like the upside, watch the 61.8% retracement near 1.35987 as close risk. Move below and there could be further probing to the downside on the disappointment from moving to new highs for the month.

On the topside it would take a move back above the 1.3627 level to have traders next targeting the high from last week at 1.3643. A move above would then look toward the January 20 high of 1.3662 as the next topside target.

Helping to support the GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term is the weakness in the EURGBP EUR/GBP The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP). The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds. The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded cur The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP). The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds. The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded cur Read this Term today.

Looking at the hourly chart below, the pair moved above the downward sloping 100 hour moving average yesterday after testing it on Tuesday and finding sellers. However after breaking back below that moving average level during yesterday's trade, the buyers turned to sellers and started to use that moving average level as resistance.

The price has moved below a swing area between 0.83458 and 0.83503. Stay below that area keeps the sellers more control today. On the downside, the next target comes near 0.8324.