GBPUSD moves to new session highs. Looks toward swing area near 1.25367 to 1.2547.

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 moving to a new session high and has now seen successive higher highs for 4 consecutive days (and higher lows as well). Price action has been choppy however.

The price spike higher yesterday saw the price extend above the 50% midpoint of the May trading range at 1.24933, but stalled right ahead of the natural resistance at 1.2500. The subsequent fall yesterday took the price back below the 100-hour moving average. The price settled below that 100-hour moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot Read this Term, but above the lower 200-hour moving average (green line in the chart below).

In trading today, the price moved back above the falling 100-hour moving average and stayed above after testing it in the Asian session. That 100-hour moving average provided a launchpad for the European and early US trading move to the upside. The move higher has been helped by the weaker jobs in the US (initial jobless claims soared to 20-month highs). Technically the price extended above the 50% midpoint retracement at 1.24933. Stay above the 50% retracement going forward keeps the buyers more control going forward.

What next?

The 61.8% retracement of the May trading range comes in at 1.25372. There is a swing area between 1.35367 and 1.25474 that would need to be broken to give the buyers even more control. As mentioned above, the 50% retracement level is a key barometer for bullish above/bearish below. Staying above it is also positive. But moving below would be an issue.

US yields are lower with the two-year down -5.8 basis points and the 10 year down -3.3 basis points. That is helping the bullish tone for the GBPUSD pair.