In the video earlier this morning, I highlighted the 1.3348 level as a key bearish gauge for GBP/USD today. A move below this level would be more bearish. Holding above it would be more bullish. Here is the reference for this level:
Looking at the current hourly chart below, the 100-hour moving average has been tested on three separate hourly bars in the US session. Each time, buyers have taken up the risk-defining level. The last level has now led to a rally to 1.34175. Yesterday’s high was 1.34291. These levels are the highest since February 2024 for GBP/USD.
The holding of the 100-hour moving average also increases the importance of this level in the future for traders at least in the short term. For traders who are bullish on the GBP/USD pair, a break of it should be a stop loss. I expect that if it breaks today, buyers will be disappointed by the failure.
Looking at the weekly chart below, the price is currently trading within a swing zone between 1.3411 and 1.3511. This swing zone only dates back to the period from June 2018 to December 2020, where it provided a ceiling for the pair.
With more bullish momentum, the 1.3511 level is the next major target level that buyers need to reach and break for further gains.