The GBPUSD has raced higher ahead of the US CPI as the rumoured backtracking of the budget proposal send the pair sharply to the upside.
Looking at the hourly chart, the move has taken the pric above the 200 hour MA at 1.1874 adn also above a swing area between 1.12109 and 1.12446. The high price reached 1.1292 The current price is at 1.1257 as I type.
Technically, the shift has turned the bias more in favor of the buyers as it sent the seller scrambling. The 200 hour MA as now a risk level and bias defining level for the pair. Stay above is more bullish. Move below and the bias is more neutral.
On the topside the next target is 1.1350 to 1.3643. Above that and traders will eye the 1.1404 to 1.1459 area. See green numbered circles on the chart above). The highs last week extended above that are but stall just ahead of the 1.1500 level at 1.14949.
On the downside move back below the 200 horu MA and traders will eye the 100 hour MA at 1.1068. The GBPUSD price moved above that MA late in the NY session yesterday and despite a brief move below the level in the late Asian/early Europe session, the price based near the level and started the run higher (helped by the backtracking news).