GBPUSD moves back above technical levels as USD falls. Back above key swing area.

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 snapped back to the upside after tamer core PCE data. The move to the upside comes after the pair tested a swing area going back to June 12 – 14 (see green number circles) and the swing low from Wednesday's trade at 1.2599. Recall yesterday, the price also tested that level then fell below but quickly rebounded. The low price today reached 1.25985.

The move to the upside was given a boost after the core PCE data in the US today came a touch lower than expectations at 4.6% versus 4.7%. That helped to weaken the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term. Yields in the US erased earlier moves of the upside.

Technically, the price moved above its 100-hour moving average of 1.2678, and then above what was a key swing area between 1.2687 1.26988 (see red number circles on the chart below).

What has stalled the pair is the 200-hour moving average at 1.27099.

Looking back, that 200-hour moving average found willing sellers last Friday, Monday, Tuesday, and again on Wednesday before moving sharply to the downside. As a result, it makes sense to find sellers on the 1st test against that moving average. However, a move back below the 100 hour moving average would be needed to give the buyers some cause for pause.

On the top side, a move above the 200-hour moving average, would open the door for a potential run toward the highest for the week at 1.2759.