GBPUSD makes another new high going back to end of April 2018.
The GBPUSD on the weekly chart above, is moving away from a topside trend line connecting highs from 2019. That trend line cuts across at 1.3729. It was broken on Mondays trade. Yesterday, the pair continue to run higher and that is rolling over into today as well. Looking at the weekly chart, there is only open road ahead as long as the price can remain above that trend line. PS the price moved above its 38.2% retracement of the move down from the 2014 high which is also good for the buyers.
Drilling all the way down to the hourly chart, just above that 1.3729 from the daily chart level, was a ceiling area between 1.3745 and 1.3758 (see green numbered circles and yellow area).
As outlined in numerous posts yesterday, that area was broken, then retested, then pushed higher. Ultimately, it still remains a key/barometer for buyers and sellers – especially since the pair is now trading at high levels going back to 2018. As long as the price can remain above that area, the buyers are in control. Move back below, and there would be a more negative/bearish tilt.
Toward the end of the day yesterday, the price moved above a topside trend line on the hourly chart. In trading today, the price did move back below that line on 2 separate occasions, but each time the price rebounded and reestablished support against the the line (including the most recent corrective low). That line currently cuts across at 1.3829. Stay above and the buyers remain in firm control. Move below, and we could see some profit-taking.
The GBPUSD pair has been up for 4+ days now. The low last Thursday came in at 1.3561. That equates to close to 300 pips over that time span. However, remember trends tend to go farther than traders expect, so look for a reason to sell. The underside of the broken trend line is a reason. A new high may not be.