Forex technical analysis: GBPUSD chops around at 10 month highs

Still above broken trend line on daily

The GBPUSD moved above a topside trend line yesterday at 1.3172 and traded at new 10 month highs. That trend line today is a few pips higher at 1.31757. The low today could only reach 1.3190 and newer 10 month highs have been made. So staying above this trend line is still more bullish for the pair. Key risk level for buyers looking for more upside.

Looking at the hourly chart today (see below), the price action is chopping up and down. I have put two trend lines on the chart. The lower extends from the June 30th highs that cuts across at 1.3205. The price has moved below that line but with limited momentum. The upper trend line has been more of a ceiling for prices today (so red circles). Look for a break with momentum.

On the downside the key level is that trend line on the daily at 1.3175 today. On a break higher there is not a whole lot of resistance. Traders will look toward the natural resistance level at 1.3300. There might be some resistance at 1.3278 which is the swing high going back to August 26, 2016.