Interpretting the "wiggles and waggles" of the GBPUSD
The "wiggles" to the 200 bar MA find sellers. The "waggles to the 1.3024 level stalls the falls.
When the market is chopping around, sometimes the "wiggles and waggles" up and down tell a story. That story can only change on a chapter that does not do what the story line has been saying.
You don't have to get too complicated in the story.
Looking at the GBPUSD on the 5 minute chart, on the "wiggles" higher, the 200 bar MA (green line) has shown a pattern of holding the rallies. That is the price goes up, and sellers lean against the MA line. That is the topside story (I outlined that potential story line earlier in the day in THIS post).
On the downside, the "waggles" today have made the 1.30246 a floor. Now, that floor was broken (the story line changed) not once but twice, but in recent history, the floor has found buyers.
So on the "waggles" you can say the 1.3024 level is a level to get AND stay below. Since it has failed twice, we can sell on a break, but if it fails again (and can't get below the low for the day), we have to cover.
So when interpretting a wiggle and waggle market, try to tell the markets story by reading what the charts are saying. It could give you clues as to what the future chapters of the price action will tell us.