The GBPUSD moved lower in the early European session, testing a key swing area between 1.3446 and 1.3465.
The GBPUSD moved lower in the early European session, testing a key swing area between 1.3446 and 1.3465. That move also dipped below the key 100-day moving average at 1.3465, but sellers couldn’t sustain momentum.
The low reached 1.3455 before buyers stepped in and pushed the price higher. Part of the reversal came as sharp downside momentum in USDJPY triggered broader USD selling. Fundamentally, the Bank of England held rates steady, but one member voted for a 25 bp hike, adding a slight hawkish tilt.
As the North American session got underway, the pair hovered around the converged 100- and 200-hour moving averages near 1.3510—a classic “three’s a crowd” setup defined by the current price, and the 2 hourly moving averages, signaling indecision and a potential breakout brewing. That breakout came to the upside. A move above the European high at 1.35345 triggered momentum buying, driving the pair toward a key swing area between 1.3575 and 1.35985—defined by prior highs from mid-April.