Move higher corrected around 38.2%. Price back below 200 hour moving average. Looking to test the 100 hour moving average.
The GBPUSD bottomed on Monday against day downward sloping trendline at 1.20729, and corrected into highs and Tuesday and Wednesday. Those highs reached the 38.2% retracement of the move down from the April 30 high at the 1.22905 level, but could not muster any momentum above that plain-vanilla corrective level. That makes, the move higher is simple plain-vanilla correction (for now at least).
Today we are seeing the price having trouble getting and staying above the 200 hour moving average at 1.22345. Stay below keeps the sellers more in control.
There is work to do on the downside at the 100 hour moving average at 1.2200. Keeping buyers hopes alive is that the price did moved below that moving average earlier in the session and failed. So although the tilt is lower, it is contingent on getting and staying below the 100 hour moving average. Moving back above the 200 hour moving average with momentum negates the bearish tilt.
Adam has a must post on the negative rate tilt seen now in the UK. You can read it by clicking here.
