The GBPUSD moved lower earlier today after the expected employment data. The decline saw the price move back below the 38.2% retracement of the move down from the mid-October high at 1.31422, but find support buyers near the converged 100 and 200 hour moving averages near 1.3119.
The price bounced back above the 38.2% retracement level, and after retesting it and holding support, the buyers reentered pushing price higher The high price moved back toward the 38.2%. The high reached 1.31834 – just 2 pips shy of the retracement level. The current price trades at 1.31745.
What next?
Holding below the target resistance between 1.31855 and 1.31913 keeps the sellers in play/control. It would take a move above those levels to increase the bullish bias.
Support and resistance is doing their jobs. Traders are awaiting the next shove.
This article was written by Greg Michalowski at investinglive.com.