The GBPUSD is snapping back higher.
In the kickstart technical video from earlier, the pair had moved back below the 100/200 hour MAs which are converged at 1.2719. That tilt of the bias more to the downside but a swing area between 1.2678 and 1.26988 stalled the fall near the 1.2689 level.
The move back above the 100 and 200-hour moving averages disappointed the sellers looking for something more to the downside. Sellers turned to buyers.
Looking at the price action this week, the low price from Monday stalled near the low price from August 3 and also the rising 100-day moving average.
The subsequent up-and-down move back to the upside saw the peak for the week stall against the low of a swing area between 1.2789 and 1.2799.
So overall the pair is trading within the “red box” that has confined most of the price action over the last 14 or so trading days. Being above the 100 and 200-hour moving average – like it or not – tilts the bias more to the upside. However, the up-and-down price action is indicative of a market that doesn’t know which way it wants to go. As a result, it could beget more up-and-down volatility. Listen to the market. Don’t fall in love with it until it decides to break-out.
Sellers had shot. It is the buyer’s turn above the 100 and 200-hour moving averages now.
This article was written by Greg Michalowski at www.forexlive.com. Source