The GBPUSD is getting a boost to new highs helped by comments from BOE Bailey that inflation is the central banks biggest challenge, and rising food price were also a major worry. The BOE warned that inflation may rise to 10% later this year.
Looking at the hourly chart, the price has now moved above a swing area between 1.2288 and 1.23006. The next key target comes against the falling 200 hour moving average at 1.23208. The price is not traded above that moving average since May 5. Above that the 38.2% retracement of the move down from the May 4 high cuts across at 1.23387.
Getting above all those levels are the minimum if the buyers are to take more control in the GBPUSD. Absent that, and the correction is still a plain-vanilla variety.
Move above the 38.2% retracement and traders will start to look toward the 1.23957 to 1.2400 area where the 50% is also in play.
On the downside the 1.22888 is now a close risk level (low of swing area). The price should stay above that swing area if the buyers are serious about moving the price higher off of the recent a cycle low from Friday’s trade at 1.21543.