GBPUSD returns back to unchanged on the day

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 has returned to the closing level from yesterday at 1.20481. The high price just reached 1.2053. The current price trades at 1.2043.

The move back to the upside in the US morning session started after the pair tested a upward sloping trendline near the low at 1.19627. The rising 200 hour moving average also helped to give traders a level to lean against (green line in the chart above).

After moving back above its 100 hour moving average (blue line currently at 1.1998), there was additional buying momentum.

A swing area between 1.2024 and the 50% midpoint of the move down from the June 27 high at 1.20456 has seen a breach in the current hourly bar. On Friday, yesterday and again earlier today, that midpoint level was broken. So there is some precedent. However, momentum could not take the price back toward the 61.8% retracement target on each of the moves.

Will the buyers now be able to keep the run going?

The next upside target comes against the high from Friday's trade at 1.2063. Above that and the highs from yesterday and today near 1.2089 would be the next upside hurdles. Fail and move back below the 1.20244 could see a rotation back toward the 100 hour MA at 1.1998 (or 1.2000 natural support target).

Helping the GBPUSD run from the low has been heavy selling 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 (higher GBP). That pair is down testing the low from July 13 at 0.84026. If that low holds, it may also slow the GBPUSDs run higher.

Be aware.

Sometimes the tail wags the dog and the EURGBP seems to be a bigger influence in the GBPUSD pair's trading today.