GBPUSD confined to narrow trading range

The GBPUSD today moved higher in the Asian session, and pounded against the 100/200 hour movie averages. There was a brief break in the early European session, that failed in the price moved lower into the morning London session. The low price for the day reached down toward the low of the swing area between 1.2687 and 1.26988 and the pair found support buyers.

What now?

There is support down to 1.2687. Resistance at the 100/200 hour MAs at 1.27389 and 1.27465 respectively. The range for the day is only 61 pips. The average of the last 22 days is 96 pips. So there is room to roam. The short-term bias is modestly lower below the hourly moving averages, but there is more work to do by the sellers to increase that bias advantage.

On a break below 1.2687 with momentum, and traders will look toward the 38.2% retracement of the move up from the May 25 low at 1.26413.

Conversely if the moving averages can be broken, the bias shifts back in favor of the buyers. Highs from last week would be targets.

This article was written by Greg Michalowski at Source