GBPUSD trades to a new session high and back above swing area

The GBPUSD is trading to a new session high, and in the process, broke back above its rising 200 bar moving average on the 4-hour chart at 1.26737. The price also extended above a swing area (see red number circles on the chart above) between 1.26748 and 1.26858.

That should disappoint the sellers on the break on Friday and again today. The next target comes in at 1.27048. Move above that level and opened the door for even more potential upside momentum (toward moving averages near 1.3740 area).

Despite the USD moving lower on the bounce back in the pair, US yields remain higher with the:

• 2-year 4.750%, +6.6 basis points
• 5-year 4.294%, +6.8 basis points
• 10 year 4.277%, +6.4 basis points
• 30-year 4.4.3 percent, +6.3 basis points

Philadelphia Fed Pres. Harker or to speak at the top of the hour.

Although NY Fed Pres. Williams was expected to speak at 12 PM, there has been no reported headlines from him.

This article was written by Greg Michalowski at www.forexlive.com.