Forex technical analysis: GBPUSD chops near highs

Technical Analysis

Author: Greg Michalowski | gbpusd

Generally speaking... Higher highs and higher lows

Looking at the hourly chart, the GBPUSD is trading with higher highs and higher lows. Having said that, looking at the chart, the action is choppy.  Yesterday - as an example - had the pair tumble near 100 pips, only to nearly recover the entire fall by the close. 

Today, a new high for the week was made in early London trading, only to come back lower. However, traders did come in against the 100 hour moving average (blue line in the chart above).  Risk can be defined and limited against level.  In a choppy market that's where traders feel most comfortable putting it on the water.

There are other support levels below  - the 1.5633-49 is an area where there have been lows and highs. The trend line from the August low stopped the decline yesterday (red circles).  

We currently trade in between the support at the 100 hour MA and the recent highs.  Traders who are long are in control off the 100 hour MA.  But choppy action can be anticipated. 
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