$GBPUSD continues its move higher today. 1.6589 a key level. Support 1.6531.

• gregmikefx
• October 21st, 2009

Be it the BOE minutes or the ability to bounce off the 100 day MA, the GBPUSD has rallied to new move highs of 1.6589 today.  The low for the day came in at the 1.6346 level. The 100 day MA today comes in today at 1.6350.  This successful test and bounce gave the bulls a reason to buy – and they did.

The price also used the 100 bar MA on the 5 minute chart as a springboard to higher levels.  At the time of the key test today, the 100 and 200 bar MA converged with the price before moving higher. This is often a good low risk trade opportunity (stop if the price starts moving below the moving averages).  When the market bounced it gave another green light for the buyers.

The price in the move higher, was able to get above the 61.8% retracment of the move down from the August 5th high to the low reached October 13th.  This level comes in at 1.6531 and this will be the support today. 

The high reached at 1.6589 was the high closing price over the range trading in the summer months.  During the June to early September period the market traded predominantly between 1.6317 and 1.6589 on a closing basis.  The high of this level was revisited today and I would expect it will continue to provide the upside resistance today.   A move above this level targets the 1.6620 and then 1.6661.

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