GBPUSD: Support at 200-hour MA and key levels in focus for bullish bias | Forexlive

The GBPUSD fell below its 100-hour moving average (MA) on Friday (blue line in the chart) and a swing area between 1.22608 and 1.22823. However, when the price tested a lower swing area between 1.2191 and 1.2202, as well as the 200-hour MA (green line), buyers stepped in. The last time the price tested the 200-hour MA was on March 15 during a corrective move downward, suggesting that the last two downward corrections found support from buyers at the 200-hour MA.

In today’s trading, the price moved above its 100-hour MA at 1.22567. Although the price has fluctuated around this level, it is currently trading above it and near the day’s high at 1.2279. Intraday traders will now see the 100-hour MA as a close risk level.

Examining the 4-hour chart, today’s high price is testing the upper boundary of the swing area near 1.22823 (see green numbered circles), which served as a floor back in January. In February, sellers entered near this level, but the price also broke above it, reaching the February high at 1.23428. The recent move off Friday’s low has now returned to the top of this swing area. A sustained move above this level is necessary to strengthen the bullish bias.