Bases at the right spot earlier todaypetar skakalov
The GBP/USD has race higher and trades at new session highs. In the process the pair is extending above a topside trend line is currently comes in at 1.2628 on the hourly chart below. That line connects the highs from last week from July 13 and July 15. Those highs at 1.26487 1.2663 are targets on more upside momentum. The high price from July has come in at 1.26688 so far.
The moved to the upside today based against day key support area defined by recent swing lows going back to July 6 (see green numbered circles and yellow area in the chart above). That area comes in at 1.25063 to 1.25191. The low today reached 1.25174, based 44 hours before running to the upside. 7 last 8 hours have been to the upside as the market trended. Between the low and the high the price broke back above its 100 hour moving average currently at 1.2564 and 200 hour moving average currently at 1.25827.
Support now comes in around 1.2600 level down to 1.25913. The 1.25913 was a swing hi going back to July 7 and a swing low going back to July 13. The 1.2600 level is a natural support level.
A potential negative is simply that the price has gone too far too fast and is potentially do for correction. The range for the day is 123 pips. That is above its 22 day average of 104 pips. Most of the other currency pairs are below their 22 day range. So the currency pair may be little overbought. Get back below the broken trend line might lead to some corrective downside probing with the aforementioned support levels as potential targets on the correction.
Buyers are in control.
Source: Technical Analysis