Forex Trading For Beginners 2021: GBPUSD extends above the 100 day MA and looks toward 1.4000

100 day MA at 1.39201

The GBPUSD moved up to test the July swing highs between 1.38979 and 1.39094 after the the FOMC decision yesterday. Sellers dutifully leaned against the area on the test (some profit-taking/low risk selling).

In the Asian session, the price low was able to stay above the highs from Wednesday and Thursday before the FOMC decision. That was the clue for the buyers to push higher, and they did.

The next close target was the 100 day moving average at 1.39201. After breaking above that, buyers continued to step the pair's price higher. The high just reached 1.39738.

Taking a broader look at the daily chart below, the move back above the 100 day moving average was the first look above that moving average level since June 24.

The next key target area on the topside comes between 1.40006 and 1.40167. That area is home to a number of swing highs and lows going back to March 2021 (see red numbered circles). A break above that swing area would put the price in the upper extreme area that saw highs stall near 1.42493 both in February and again in May/early June. Those are the highs for 2021, and the highest level going back to April 2000 in 18 for the pair

Finally, drilling down to the 5 minute chart below is important as the price has been able to stay above its 100 bar moving average as the pair trended higher (see blue line in the chart below). The current 100 bar moving average comes in at 1.39496. The New York session low found buyers just ahead of that moving average line 15 or so minutes ago. As long as the price can remain above the 100 bar moving average, the buyers are in firm control intraday. Move below and traders would next target the 200 bar moving average (green line).