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GBPUSD trades to new session highs. Building the bullish case.

Double bottom, snaps price above 100 hour MA.  200 hour MA hold support.

The GBPUSD trades to new session highs as the newest Brexit twists and turns, has an essence of hope (will May resign?).  The pair trades to the highest level this week and the highest since March 20.

Technically, the pair today did go lower first and that move did take the price below the 100 hour MA again. However, when the low from yesterday was tested, the buyers entered and snapped the price higher. That move took the price back above the 100 hour MA (blue line) and 200 hour MA (green line). I like the holding of the 200 hour MA on the retest (see chart above).   Buyers are building the bullish case for the pair.

The next target on the topside comes in at a trend line connecting the Friday and Monday high at 1.3273. Above that, the 1.3299-1.3309 area is home to swing highs from March 15, 18 and 19. Get above that and the March swing highs at 1.3330 adn 1.33795 will be eyed.  

On the downside, risk for the bulls/buyers is that 200 hour MA at 1.32189 now.

ForexLive

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