The 100 day MA comes in at 1.2887.
Last week and into this week, the GBPUSD traded above and below the 100 day MA for 6 consecutive days. The market was unsure of what the next move would be at the time.
The pair did decide and they decided to move lower to test the 38.2% of the 2017 range.
The low this week stalled at 1.2773. The 38.2% came in at 1.27778. The dollar selling today has sent the pair back higher and the 100 day MA is currently being tested at 1.28869. The high just printed 1.28834.
A break above would be more bullish, but given the 6 days of consolidation in the recent past, there may be a stall. Traders will need to see momentum and a break above the high from last week at 1.2917.
Drilling to the hourly chart below, the pair has raced above the 200 hour MA on the break higher. The price of the GBPUSD had not traded above the 200 hour MA since breaking lower on August 4th (see green line in the chart below). That is a key break and that MA is now a risk level for dip buyers.
So key resistance at the 100 day MA. Key support at the 200 hour MA below.
