Forex technical analysis: GBPUSD gets a boost on PM May comments

Moves above key resistance area

UK PM May said the UK would be willing to pay 20 bln Euro during transition period, but only if it has access to single market and some form of customs union.

The market is taking that comment positively for the pound and we have seen a run to new session highs.

In the process, the pair has moved above a key resistance area (see earlier post) defined by the 100 hour MA, swing levels going back to September 18th and an old trend line heading back to September 8th. That area comes in at 1.3528 area.

Stay above that area is now more bullish for the pair.

Despite the run higher in the US dollar after the FOMC yesterday, the pair did find support in the area defined by the swing levels post-Brexit at the 1.3443-1.3532. The move above the 1.3529 level on the hourly chart AND the 1.3532 level on the daily chart is even more bullish.