The GBPUSD tried to get above its 100-hour moving average for the 3rd day in a row. This time, the time above was quick (and the quickest of the three – see blue line on the chart below).
The point is that buyers had their shot once again and the hurdle was the easiest this week, and it failed again.
Going into the new trading week it would take a move above the 100-hour moving average at 1.21598 – and staying above – to give the buyers more hope for further upside momentum. There will be work to do including getting above the 200-hour moving average and getting above the next swing area between 1.22193 and 1.22316 (and the 38.2% retracement at the same 1.22316 level). However, the move above the 100-hour moving average would be step one in a potential process.
Absent that, the sellers are still in control. On the downside, the 1.21056 – 1.21109 area would be the next downside target to get to and through. Get below that level and yours will look toward the lows from this week near 1.20886 ahead of the swing low from October at 1.2036.
Of note as well on the downside is the 38.2% retracement of the daily chart (see the video) of the move up from the September 2022 low. That level comes at 1.2076, and cannot be ignored as a key level needed to get to and through (and stay below) if the sellers are to assume more control.
So sellers are more control in the short/medium term below the hourly moving averages. Can they keep that control next week? The key levels are known. Watch the video and be aware, be prepared.
This article was written by Greg Michalowski at www.forexlive.com. Source