Retests key MA
The GBPUSD has pushed back higher and in the process has run back into the 100 day MA at the 1.5484 level (see solid blue line in the chart below). The high peaked at 1.5480.
Earlier today, the price failed on the extensions above that MA level (see chart below). Now after coming higher from the lows, the pair has found some sellers happy to lean against the level on the re-test.
Overall today, the pairs correction lower (after yesterday's trend higher) fell short of the 38.2% of the move higher this week (at 1.53895). It also fell short of the 50% midpoint of the move down from the Sept 18 high (at 1.15382). That area was also home to swing highs going back to Sept 21 (see blue circles in the chart below). So the the buyers are showing some desire to keep control.
However, those buyers need to get the price back above the 100 day MA to turn the technicals "more" supportive of the upside. The sellers are leaning against that key line in the sand now (with stops above). Traders are trading with defined and limited risk. Watch for support at the Asian and London morning lows at 1.5457-60 if the buyers are to have another go at the 100 day MA today.
