Tests recent lows below. Tests 100 hour MA above. Near unchanged on the day
UGH.
The markets are little inspired today with a narrow trading range in the GBPUSD (46 pips vs 108 average over the last 22 days). The tracks of that move took the price down to the low from last Thursday (at the 1.54139 level - see prior post from yesterday). Support buyers entered.
The rally higher, then took the price to the 100 hour MA (blue line on the chart above) at the 1.5459 level (currently). The rally stalled.
The close from yesterday sits at 1.5443 and that is where the price sits around.
Since the near 250 pip move higher last Wednesday, the GBPUSD followed that with a 94 pips up and down consolidating day on Thursday. Friday saw the 100 day MA cap the upside but a narrowing 55 pip range. This week Monday and Tuesday each peeked above the 100 day MA at the 1.5490 level. Those peeks failed. However, once again trading ranges were light at around 70 pips.
Today, the lower half of the range since Thursday (the midpoint is 1.54608 (the high today is 1.54605). So I guess you can say the sellers have the slight edge. Risk is the 100 hour MA and the 1.5460 level. Having said that, most of the 250 pip rally is still in tact. So lower levels need to be breached technically speaking. SO 1.5425 low from Monday and the 1.54137 low from last Thursday remain those levels. Below that...the 200 hour MA (green line in the chart above) at 1.5401 (nice round number) should be another difficult nut to crack.
Did I say UGH? Be patient.
PS BOE Carney speaks at 1 PM ET/1700 GMT. Perhaps that is something to look forward to for some action.
