The GBPUSD is trading up and down today. The high price in the European session approached its 100-hour moving average (blue line in the chart above), but fell short of that target. Recall from yesterday, the price in the US session did move up to test that moving average and found willing sellers. Admittedly, the moving average is moving higher today making it a tougher hurdle to get to and through. Nevertheless, it still needs to be broken to increase the bullish bias from a technical perspective going forward.
On the downside, the low price today stalled just ahead of the 50% midpoint of the range since the October 26 low. That level comes in at 1.2248. Moving toward that level is the rising 200 hour moving average currently at 1.22418. Over the next 4 or 5 hours, it will move closer to that 50% level increasing its importance going forward.
Yesterday the price low did extend below that midpoint level, and failed. The subsequent low yesterday (see red numbered circle one) stalled just ahead of that midpoint level suggesting buyers were leaning. Yesterday’s low was the same as today’s low.
With the price currently trading at 1.2275, it is between the 2 technical extremes. Buyers and sellers are battling, however, the breakout levels are defined.
This article was written by Greg Michalowski at www.forexlive.com. Source