Back above 100 bar MA on 4-hour chart The GBPUSD is making a break for it today — rising above the 100 bar MA on the 4-hour chart after four tests this week that found sellers (see blue line in the chart below). The pair has been in 5-6 week range from 1.3026 to 1.3348. The midpoint of that range comes in at 1.31818. We are now above that point as well. Buyers taking more control. PS the low today stalled at just ahead of the 100 day MA at 1.31072. That too is a bullish play by buyers. They leaned against the support and it held.
Well, when you trade in a range, you hop from target to target. The next target on the chart above comes in at the 200 bar MA on the 4-hour chart at 1.32112. I would expect, if we push that level today, that the market would stall.
Now that we are above the 100 bar MA a 1.31656 — and it was tested 4 times this week — longs may have that level as a hard stop now. Stay above, more bullish. The shorts had their time in the sun. Closer risk for those concerned about the GBPUSD ability to sustain a rally would be the 50% of the 5-6 week range at 1.3181 level (go down to the old high this week at 1.3177).