Forex technical analysis: GBPUSD tests...breaks... yesterday's highs

Week's high too.

The GBPUSD is testing - well just breaking - the highs from yesterday/the week. The 61.8% of the move down from the Feb 9th high to the Feb 14 low at the 1.25055 level. 

Earlier the pair moved above the 100 bar MA on the 4-hour chart (risk now - blue line at 1.24918). Yesterday, that MA was broken, but on the prior test on Feb 16th it stalled the rise.

The price has to remain above that MA now to keep the bulls in charge (risk for longs).  

The high from Feb 16 at 1.2522 is the next target. Then the 1.2543-48 where there were a number of swing highs on Feb 7.8 and Feb 14th (see yellow area and red circles).

Yesterday the pair stalled the fall right at support from the 200 bar MA on the 4-hour chart (green line).  That MA was also near a cluster of support including the 100 day MA and old swing levels (lower yellow area).  

The question for this pair has -and continues to be - can the pair break the levels that have stalled rallies (and declines). It is a step by step process that can go either way.  So it is a bit hit or miss and the sentiment can turn around on a failure.  

To trade it, know your technical targets ahead. They are the hurdles to get to and through.  Also know the key levels in your rear view mirror.  They are the levels that need to hold to prevent a failure. 

From: ForexLive