The GBPUSD moved higher coming into the US session and in the process moved above a swing area between 1.2738 and 1.2759. Let run to the upside was that kickstarted after swing lows from both yesterday and today were able to hold against or near 100 and 200-hour moving averages (currently at 1.2691 and 1.27029).
The run to the upside extended to a high of 1.27802 before rotating back to the downside after the stronger ADP data. The 10 PM data with the ISM services index stronger than expectations has kicked the price further to the downside (higher USD). The price is now testing the 100-hour moving average at 1.27029. Moving below the 100-hour MA, and the 200-hour MA at 1.26915, will shift the technical bias even more to the downside.
The GBPUSD has nearly completed the lap with the price moving sharply higher and then nearly retracing the full move to the downside. The 100 and 200 hour moving averages are getting in the way. However, the trader mindset -= which was bullish earlier – is certainly shifting with the stronger US data.
- 2-year yield 5.075% up 12.4 basis points
- 10-year yield 4.059% +11.4 basis points
in the US stock market:
- Dow industrial average -422.4-1.23%
- S&P index -55 points or -1.24%
- NASDAQ index -200 points or -1.45%
This article was written by Greg Michalowski at www.forexlive.com. Source