A midpoint comes in at 1.37921. Swing area between 1.3790 and the 200-day moving average at 1.38043
The GBP extends back to the midpoint of the range as of July 30th. That level comes in at 1.37921. The high price has just reached 1.3790.
That high also reached the low of swing area since 1.3790 and upper resistance target at the 200-day moving average at 1.38043 (see red numbered circles).
Yesterday the price moved that swing area and doing so also above the 200-day moving average for the first time after a similar break on 18 August. As on August 18, the price quickly returned to the downside after the failed break.
Finding above the 200-day moving average – and staying above – would be a bullish change for the pair today / ahead.
Setting the gain today was the basis against the moving average of 100 hours and a 38.2% retreat near 1.3745.
In the Asian session, the price moves below the 100-hour moving average after successfully testing it on Monday and Tuesday. However the downside momentum after the break could not continue, and the price moved back above the moving average level.
Finding supportive buyers against that moving average in the London morning session was an indication for the buyers to push the pair higher from a technical perspective.