The GBPUSD has moved to a new session high as London/European traders look to exit for the day. The price had been inching higher after an initial dip in the Asian Pacific session and found support ahead of the 50% midpoint of the move up from the June 29 below near 1.2866. The low for the day reached 1.2874. The 100-hour moving average is just below that level at 1.2862 currently. Through the FOMC rate decision, the 50% midpoint and the 100-hour moving average will be a level that if broken would increase the bearish bias.
On the top side, the pair is approaching its falling 200 hour moving average at 1.29469. The price moved below that level last Wednesday. Since then the moving average slope has turned back to the downside, but the price has not been able to get back above that moving average level. Through the FOMC rate decision, if the price can extend above it traders with next target a swing area between 1.2970 and 1.2989.
Overall the price is higher on the day, but there is still work to do to increase the bullish bias. For bears, sellers may also look to lean against the 200 hour moving average resistance levels to take profit or enter a more bearish view ahead of the FOMC rate decision.
This article was written by Greg Michalowski at www.forexlive.com. Source