GBPUSD making new highs and works toward 200 day MA
November 24, 2022 at 14:54
GBPUSD moves closer to the 200 day MA
The GBPUSD is moving higher in trading at the highest level since August 12 in the process. The high price has reached 1.20428 so far.
Looking at the daily chart, recall from yesterday the price extended up to and above the 50% of the 2022 trading range. That level comes in at 1.20499 (call 1.2050). The price extended to a high price yesterday of 1.20798 but backed off into the close (closing just above the 50% at 1.20529).
In trading today, the low price reached down to 1.20402, but was able to stay comfortably above the old swing high from November 15 at 1.20276 (the hourly chart below). Staying above that bias defining level, kept the buyers in control, and the price has been able to extend higher in the European session. The 50% retracement 1.20499 is now close support. Traders looking for more upside with a more conservative stop could use the 1.20276 level as a stoploss level still.
GBPUSD moves higher and away from November 15 high
On the topside, the pair is getting closer to a key target. That target being the 200 day moving average at 1.21902. The price has not traded above its 200 day moving average since a brief look on January 13. Prior to that you have to go back to September 16, 2021 for the last time the price traded above its 200 day moving average (see green line in the daily chart above).
I would expect that the 200 day moving average would give traders cause for pause on the first look. If you are seller look to lean against that level on further upside momentum.
On the downside, it will now take a move back below the 1.20499 level and the 1.20276 level to discourage the bullish bias for those traders looking for more upside in the pair.