The GBPUSD moved lower in the early US trading and in the process extended down to the rising 100-hour moving average of 1.26859. Buyers leaned on the test as risk could be defined and limited against the moving average level. The price bounced higher.
The move higher took the price up to 1.2722 which was just short of the highlights seen earlier today that 1.2723. The high-price last week reached 1.27247. Getting above those levels would be a break and should lead to further upside momentum.
For now however, the traders have defined a ceiling resistance, and a moving average support level. Moving above 1.2725 would be more bullish. Moving below the rising 100 hour MA at 1.26859 (and moving higher) would be more bearish.
This article was written by Greg Michalowski at www.forexlive.com. Source