Tests its 100 day moving average in the process
The GBPUSD is trading to a new high going back to August 6 after the lower than expected US CPI.
The move to the upside has taken the price above recent swing highs between 1.38868 and 1.38983. That area will now be eyed as support. Stay above and the buyers remain in full control.
Having said that on the topside, the pair has reached its 100 day moving average at 1.39129 and found sellers leaning against the level. The current price trade at 1.3905.
So in the short term, there is some cause for pause against that key longer-term moving average. However it would take a move below 1.388682 hurt the bullish bias from a technical perspective.
Taking a look at the daily chart, the price last moved above its 100 day moving average back on August 6. The high price from July reach 1.39827. That would be a target on further momentum to the upside. Above that the 1.4000 to I.40167 (see red numbered circles) would be a key target area (see red numbered circles on the chart below). There are a number of swing highs and lows in that area ahead of the high for the year at 1.42493.
On the downside, the price action today stayed above its 200 day moving average at 1.38246. That is now key support going forward. Stay above and the buyers remain in firm control on the daily chart.