Forex technical analysis: GBPUSD trends higher today
The range is not great but the direction is higher
The GBPUSD has about a 63 pips trading range today. It is not a lot, but it is the end of the year and you cannot expect much.
Although the range is contained, the directional bias has been to the upside. The Asian session saw the price meander above and below the 100 hour MA. Then early in the European session, the price started to find more buyers. A break above a topside trend line (line was tested in the late NY session yesterday and held), helped the buyers jump in the bullish water. The pair has marched higher since the break.
At the highs, the price has been able to get above swing highs from December 18 and December 20 at 1.34175 and 1.3420. We trade around that area after hitting a high at 1.3429. The 1.3417-20 will be eyed as a close support level off the hourly chart. Longs would love to see that level hold and for the trend move to continue.
If it does, the 1.3446 level will likely be another tough nut to crack. That level was home to 3 highs from Dec 14 and 15. The 1.34617 is the high from December 14. Not shown, but the high from Dec 8 is 1.3519. The high for December reached 1.3549.
The pair has been consolidating in a triangle as the month works toward the end of the year. The break today gave traders the opportunity to nick a few pips on the breakout. Can that continue? Stay above 1.3417 will be eyed for that possibility.
PS a move below and traders will look down at 1.3400 as the downside support target.