GBPUSD tests 200 hour MA at the start of the NA session
The GBPUSD is up for the 3rd day
Yesterday, the GBPUSD moved above its 100 hour moving average (blue line in the chart below) for the 1st time since September 3, but ran into resistance against a topside trend line (see red numbered circle 3 and 4 in the chart below) and rotated back below that key moving average level (blue line).
However by the close, the price had extended back above the 100 hour moving average level,but still remained below the trendline.
In the Asian session today, the price was able to get above that trend line. Moreover, the corrective move back toward the broken trend line held support in the London/European morning session. The ability to stay above the trend line give the buyers to go ahead to push higher.
The last 4 hourly bars has moved the GBPUSD move to the upside. In the process, the price is currently testing its 200 hour moving average at 1.29797. The price has extended just above that level, but is stalling ahead of the retail sales at the bottom of the hour.
A move higher - with momentum – would next target the 38.2% retracement of the move down from the September 1 high. That comes in at 1.30365. That is also the high price from September 10.
Staying below the 200 hour moving average and traders will look toward the 1.29185 for close support (near high prices from September 14 and September 15).