GBPUSD soars to new highs as European traders wrap up for the day

The GBPUSD is extending back toward its earlier highs at 1.2750 as European traders look to exit for the day. The GBPUSD moved higher in the European session. The UK CBI Trends Orders for December showed a significant improvement, with the orders figure reaching -23.0, a notable increase from the previous -35.0 and marking the highest level since September. This indicates a less negative outlook for the manufacturing sector. Additionally, the manufacturing output expectations showed a positive balance of +5, a recovery from the previous month’s -7, suggesting an optimistic forecast for production. However, the price expectations balance experienced a downturn, moving to -7 from the previous month’s +11.

Looking at the hourly chart, the corrective move from the earlier high came into a swing area between 1.2723 and 1.27325 (see green number of circles). Support buyers leaned against the area, and have pushed the price back toward session highs. The high prices from last week reached 1.2793 and 1.2790 respectively and would be the next targets for further momentum. Close risk would be a break below 1.2723. Staying above that level keeps the buyers firmly in control.

Taking a broader look at the 4 hour chart below, the 1.2789 – 1.2799 area is home to a number swing is going back to July through August. Getting above that area would next target 1.2835 – 1.28486.

For the year, the GBPUSD reached a high back in the middle of July at 1.31409 before rotating lower and reaching the 2023 low in early October at 1.20367. The price moved above and below the 50% of the 2023 range at the end of November and into December. The low in December, however, did find support buyers at the 200-day MA (see green line on the daily chart below). Holding that level and getting above the 50% is keeping the buyers more in control from the daily chart perspective.

This article was written by Greg Michalowski at Source