Tough resistance above. Can interim support be broken?
The GBPUSD moved up to test the 200 hour MA and the 50% retracement of the move down from the July 9 high. That area now comes in at 1.3148-58 (the 200 hour MA was higher earlier). The high for the day reached 1.31577 - right under the 50% midpoint level.
The low for the day has moved a little below the broken 38.2% at 1.31108 level. The swing low from July 13 comes in at 1.3102.
The range for the day is only about 52 pips. There is room to roam - either to the downside or the upside. We are down testing a support area at 1.3102-10. A break below will look toward the 100 hour MA at 1.30764.
On the topside, the 200 hour and 50% remains a key area to get above. A break looks toward the 61.8% at 1.32059.
We trade in the middle of those extremes. Do the buyers come in and go test the key resistance above, or do the sellers push for the next run lower and the 100 hour MA? Pick your poison in the up and down day today for the pair.
FYI watch an oldie but goodie video: "Forex Education: The 50% retracement and 200 bar MA Trading Rule"
