GBPUSD test key weekly technical level.  What is in play and why is it so important?

GBPUSD test key weekly technical level. What is in play and why is it so important?

The last time was back in 2014….

The GBP is the strongest currency today. Although the pair is highest vs. the CHF, JPY and EUR, its is also higher vs the USD by about 0.44%.

The push higher in the pair seems to be contained by a key technical level.

Looking at the weekly chart above, the GBPUSD is testing the 200 week MA at 1.42386 (Bloomberg has the MA a little higher at 1.4245). The currently price is at 1.4240. The high for the day reached 1.4246 so far.  

The last time a week closed above the weekly MA, takes you back to week of October 19, 2014. That is a long time ago.  

So a break above – and staying above – will be eyed from a technical perspective.   

On a break, the high from 2018 at 1.4344 will be the next key target.  By the way, the week before Brexit back June 2016 closed at 1.43527.  So the 1.4344-527 may be a resistance aree.  

Drilling to the daily chart the price today moved above a topside trend line at 1.42177.  A move back below that trend line would be more bearish for the pair. Be aware.

PS. Keep an eye on the EURGBP. See the chart below…

 

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