Technically speaking...tests 100 hour MA
Keeping things simple....Yesterday the GBPUSD traded above and below the 200 hour MA (green line in the chart below) but in the NY afternoon session, broken higher and tested the 100 hour moving average and backed off (blue line in the chart below).
In the early European session today, the price tested the 200 hour moving average (green line in the chart below), and bounced. The bounce was able to get above the 100 hour MA this time (it cannot just stay in one place forever) and the we saw the GBPUSD move to new session highs before Yellen. The comments came out - maybe not as dovish as some thought/maybe just not sure of what to do - and the price started to move back lower. We are now staring the 100 hour MA in the face again at the 1.4490 (the low at 1.4498).
Yellen aside, technically, the 100 hour MA should hold. If it does not, the buyers can easily turn to sellers and we could see another look at the 200 hour MA.
Hey...we love when the market trends but when it has trouble with higher or lower, traders start to hop and skip and jump and leap from level to level - hoping for a break and run. If they don't get it, they go with the flow from the tools.
Leaners against the 100 hour MA now.
