The GBPUSD is working on a three day higher streak today. The gain on Monday was modest versus Friday's close. Yesterday after a choppy session, the pair also closed higher. Today, there has been more choppy up-and-down moves, but once again the the price is higher on the day. The price is up about 26 pips on the day after closing near 1.3542.
Although up for three straight days, the range for the week is only 99 pips so far. Although okay, with three straight days higher it somewhat reflects the choppy up-and-down move in that direction. There is room to roam for the week, and extend the trading range at some point. Will and extend higher or lower?
Technically, the price action today saw a move above the 100 hour moving average, and the 50% midpoint of the 2022 trading range at 1.35526 in the Asian session, then moved back below that same moving average/retracement level later in that session and into the early European session.
That move back below the key technical levels failed, and the pair has since moved higher peaking at 1.3588. That high was near swing highs and swing lows from February 2 and February 3 near 1.3584 to 1.3587. Sellers leaned.
The price currently is trading around 1.3566 as traders continue the ups and downs.
What now?
IF the move is to continue to the upside, other technical levels needed to be broken if the buyers are to keep the momentum going include the
- Downward sloping trend line near 1.3595,
- The 61.8% retracement of the 2022 trading range at 1.35987
- A swing area between 1.35978 at 1.36026
Getting above each of those levels would increase the bullish bias, and have traders looking toward the high from last week at 1.36271 (there is a swing area between 1.36188 at 1.36271)
What would hurt the bullish bias?
A move back below the 100 hour moving average and 50% midpoint of the 2022 trading range 1.35526 would not be a good development technically, it would likely lead to more buyers turned to sellers on the disappointment.
BOE economist Pills is speaking today. You can see comments HERE and HERE