Tests 4-hour MA
The GBPUSD has printed a new session high at 1.2926 and in the process has inched above the 100 bar MA on the 4-hour chart at 1.2923. That is the first breach of the MA since it fell below on August 4th. The test is finding some sellers who are betting that the first test will hold and retrace at least for a quick trade. I would suspect that those sellers would give up if breached again.
On the downside, the pair today opened above the 100 day MA at 1.28919, but sellers did enter and push the price lower and back below. The pair did reverse back above though and that makes buying a dip a good idea.
So if the 100 bar MA on the 4-hour does hold, I would expect that buyers would come in ahead of the 100 day MA below. If the correction does not materialize, 1.2950 (an old swing low area), the topside trend line at 1.2956 and 38.2% retracement at 1.29617 are the next upside hurdles for the pair to get to and through.
