GBP/USD buyers pushed the pair above a key swing area target on July 31, after the currency pair successfully held support at its converged 100-day and 200-day moving averages during an earlier pullback.

The GBP/USD had surged higher the previous session, extending its rally toward a key swing level at 1.34797. During the Asia-Pacific and early European trading sessions, however, the pair corrected lower, retracing back to its converged 100-day and 200-day moving averages near 1.3398. The session low reached 1.3400, just a few pips above that critical support zone.

That test proved to be a turning point. Buyers stepped back in aggressively, driving the pair back above the previous session's highs and through the 1.34797 swing level. The breakout pushed GBP/USD to its highest level since July 16, giving buyers greater control from a technical perspective.

With 1.34797 now broken, the next upside target comes in near 1.3517, followed by the July high at 1.35573. The converged 100-day and 200-day moving averages near 1.3398 remain the key downside level that would need to give way to shift momentum toward sellers.

The rebound underscores the significance of the 100-day and 200-day moving averages as a technical barometer. By defending that support, buyers maintained the broader bullish bias heading into the new trading week. As long as the pair remains above those moving averages, the technical advantage stays with the bulls. A move back below them would be needed to shift control toward the sellers.

GBP/USD is one of the most heavily traded currency pairs in the global forex market, reflecting the relative economic and monetary policy trajectories of the United Kingdom and the United States. Traders routinely monitor Bank of England and Federal Reserve policy signals, along with inflation and growth data from both economies, as fundamental drivers that can reinforce or counter technical patterns like the moving average support held this session.

Source: investingLive