The GBPUSD buyers are breaking the price of the pair higher, and in the process are extending above it at 200 hour moving average with momentum at 1.21844. That level will now be a risk level for buyers. Staying above is more bullish.
On the top side, there is a swing area between 1.2219 and 1.22316. That would be the next target area to get to and through to open the door for further upside momentum.
Earlier today, the sellers had their shot below the 100-hour moving average on a number of different hourly bars. In the New York session, there was a final test of that 100-hour moving average. The inability to move below that moving average and stay below finally gave the buyers the go-ahead to make a run to the upside.
GBPUSD breaks and runs higher
Helping the dollar selling is that yields have come off their eyes. The 10-year yield is now down at 4.909% down 1.4 basis points on the day. It traded as high as 5.02% earlier. The 2-year yield is still up by 1.7 basis points at 5.101%.
Bill Ackman is being credited with reversing the market (talking his book/trade). He said.
“There is too much risk in the world to remain short bonds at current long-term rates,” he wrote. “The economy is slowing faster than recent data suggests.”