..Breaks above trend line resistance.The GBPUSD — after an October 2 nosedive that bottomed on October 6th — has traded more up and down for the rest of the month.
Two technical tests of note this month from the daily chart above, were the tests of the 100 day MA (blue line in the chart above). The first was on October 6th. The low reached 1.3026. The 100 day MA was at 1.3014. The next test was on Friday last week (October 27th) when the low reached 1.3068 with the 100 day MA at 1.3058.
So buyers showed up ahead of the key 100 day MA level and took the price higher off those lows.
Drilling down to the hourly chart below, the pairs climb off the low on Friday has now taken the price back above the
- 100 and 200 hour MAs, (loser blue and green lines in the chart below currently at 1.31759 and 1.31832), the
- 100 bar MA on the 4-hour chart (overlayed step blue line in the chart below currently at 1.31959), and now
- Above a topside trend line at 1.3255. This level is now risk for buyers.
The 1.32788 is the next target and being tested/broken as I type. IF the buyers can keep the momentum going. The 200 bar MA on the 4-hour chart is up at 1.32963 and the high for the month comes in at 1.3337.
The Bank of England will meet on Thursday, and the market is expecting a 0.25% tightening. The expectation is for a 7-2 vote (the hike probability is at 87% currently).
GDP for 2018 is expected to be increased as is CPI inflation.
Will they signal more tightenings down the road? There is room to roam on the upside if so.. Looking at the daily chart above, the yellow area was a ceiling area after the Brexit plunge in June 2016. That area comes in at 1.3443 to 1.3552. In September the price moved above that area twice but failed twice. Key area on a big move higher.