The GBPUSD – like the EURUSD- moved higher in the early US session. For this pair the move broke above the 100-day MA at 1.2665. The momentum next took the price above its 200-bar moving average on the 4-hour chart at 1.2684. The next target was at the 50% midpoint of the move down from the March high to the March low at 1.27158.
The price fell short of that midpoint level and has since rotated back down. The 200-bar moving average on the 4-hour chart was broken, but so far the 100-day moving average is trying to hold support. A move below the level would next target the 100-bar MA on the 4-hour at 1.2645.
That cluster of moving averages will remain as a barometer for bulls and bears. Move above the high MA is more bullish. Move below the low MA would be more bearish.
This article was written by Greg Michalowski at www.forexlive.com. Source