The GBPUSD continues to probe to the downside after testing a key target on the daily chart near 1.31465 on Friday. The high price reached 1.3142 and backed off.
The modest corrective move to the downside on Friday and again today has allowed for the 100-hour moving average to catch up to the price. That moving average comes in at 1.30357 and moves higher. Moving below that level would be needed to increase the bearish bias with a 1.3000 level on the downside as a nice target to shoot for on a break.
Conversely, move above 1.30817, and above the close from Friday near 1.3095 would disappoint the corrective sellers.
The range in the GBPUSD is only 58 pips today. The average of the last 22 days is 89 pips. So there is room to roam on a break higher – or break lower outside of the range today.
This article was written by Greg Michalowski at www.forexlive.com. Source