The GBPUSD is back down testing the 100 hour MA (blue line in the chart below)> The price moved above this MA for the first time since Nov 11/12. On that breach, the price break failed.
Today, the break above the MA line, sent the price toward the next topside target against the 1.5993 (the high extended to 1.5699). This was lows and highs over the last 4 days of trading (see red horizontal line in the chart below). Seller came in and now the battle between the 100 hour MA at the 1.56625 and the 1.5693-99 area is on.
GBPUSD traded above the 100 hour MA for the first time since Nov 11/12
I will give the benefit of the doubt to the buyers today as the break of the low today failed and the push above the 100 hour MA is worth something. A move above the 1.5693-99 will be eyed for further corrective confirmation with the 38.2% at 1.5726 the next target (see chart below). Note the low to high trading range is already 112 or so pips which is about the average over the last 22 trading days (105 is the average). So there may be a reluctance to extend. So look for the sellers/profit takers near extremes if the price is able to get back there with stops above. A move below the 100 hour MA is not a good sign for the buyers.
