The GBPUSD moved to a session of 1.2615. That was within 3.5 pips of its rising 100-day moving average at 1.26115. Support buyers leaned against the level along with a swing area between 1.25987 and 1.26798. The price has bounced sharply and currently trades just below the 1.2700 level. With the 100-day MA holding and the price back above the high of the swing area, the threat is the buyers are back in control. Watch the 1.2679 level for close support now. If it can, that would be a bullish clue – at least in the short term.
Drilling to the hourly chart below, what would also give buyers more confidence is if the price could extend back above its 100 hour moving average at 1.27124. Its 200-hour moving average comes in at 1.27210.
Recall on Friday, the price high stalled against those moving averages only to back off (to the downside). Getting and staying above those moving averages is required to give the buyers more confidence off the hourly chart perspective.
To watch the earlier video on the GBPUSD, click on the video below:
This article was written by Greg Michalowski at www.forexlive.com. Source