The GBPUSD has moved to a new session high, and in the process, has extended above its 200 hour moving average at 1.2728. However, the pair is finding some “stall” near its 100-hour moving average at 1.2744 (blue line on the chart above). That moving average will be the barometer for both buyers and sellers.
- Moving above the 100-day moving average at 1.2744 increases the bullish bias.
- Staying below and moving below the 200-hour MA at 1.2728 would shift the bias more to the downside.
Earlier today, the pair moved to the lowest level this week, and in the process entered a swing area between 1.2675 and 1.2686. The low price reached 1.26801 between that area and bounced higher. The “floor’s” importance was increased off of the support bounce. Be aware in case of a rotation back to the downside.
On the topside breaking above the 100-hour moving average – and staying above – would have traders looking toward the high price from last week at 1.2759, followed by the high-priced from this week just short of the 1.2800 level.
This article was written by Greg Michalowski at www.forexlive.com. Source