Last closed below MA on August 10
The GBPUSD is trading at new session lows and in the process tests the 100 hour MA (blue line in the chart below). That level comes in at 1.56109. The price for the pair has not closed below the moving average line since August 10th.
At the high extremes, the price action continues to have trouble above the 1.5633-49 area. The time spent above the level today was for a longer time period then the previous attempts (see red shaded areas). However, the failure to get above the month long high at 1.5689, has led to buyers turning around once again.
Over the weekend there were comments from BOE Forbes who said rates need to rise "well before" inflation hits target, but there was another article saying that No-flation reduces the likelihood of a BOE rate hike.
Traders who have been selling will continue to look for that move below the MA (and staying below) to signal that the sellers are more in control. Buyers will likely lean against the level with stops below. On a break the 200 hour MA will be the next target (green line in the chart above).
