The GBPUSD has moved to a new high and in the process, the price has reached the 100-hour MA at 1.23014. It is also close to the 1.2300 natural resistance level.
One technical targets are reached there tends to be a stall, and that is what we are seeing as buyers take profit or sellers get involved against the level. A move above should see some of those shorts covering. Alternatively, a move back below 1.2261-75 would give the sellers more confidence technically (see red circles).
Earlier today, the price fell below the 50% midpoint of the move up from the October 26 low. That move should have seen further momentum with the rising 200-hour moving average as support, but selling slowed and the next test of the 50% midpoint found willing buyers.
This article was written by Greg Michalowski at www.forexlive.com. Source