New highs and tilt in the bias to the upside
The GBPUSD has moved to a news session high and in the process has extended above its 100 hour MA at 1.3440. The catalyst is a story saying that the is a deal is ”pretty much of there”.
Looking at the hourly chart, the price has been using the 100 hour MA as resistance. There have been a number of tests and the price has rotated down against the level. On the downside, the last 6 or so hours had been holding the 200 hour MA below (the green line). That is, until the current last bar which tried to dip below, only to fail. That was enough to kick start the upside move from a technical perspective. Stay above the 100 hour MA now is more bullish, and it is also a risk defining level for traders.
The high price from Mondays trade came in at 1.34975. That is the next upside target. Above that a swing level between 1.35387 and 1.35529 would be eyed.