The GBPUSD moved up to test the 200 hour MA (green line) at 1.29986. THe high price reached 1.29977, just below that level.
The subsequent move to the downside has seen the price move lower and toward the 100-day MA and 100-hour MA. Both of those MAs come in at 1.29683. The dualing MAs increase the levels importance for both buyers and sellers.
- Buyers can lean against the level and hope for a bounce back toward the 200-hour MA
- Sellers are hoping for a break, increasing the bearish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source