GBPUSD appears to be closing the week with more bullish momentum. The sellers had their chance and blew it.

GBPUSD moved lower and hit new week lows during the European trading session, but after testing a 200 hour moving average, sellers turned to buyers and began a run higher. This upward development was helped by lower inflation expectations according to the Michigan Consumer Confidence Report.

Technically, the price is back above its 100 hour moving average at 1.27135. This level will define the risk during the new trading week. Staying on top gives buyers more control.

On the upside, surpassing Wednesday’s high price at 1.27605 should lead to further upside momentum as market traders play the breakout after what has been a week of close trading for this currency pair (minus of 90 pips).