Keeps a bearish bias below the MA, but work needs to be done below too.

The GBPUSD has had an up and down type of day. The pair closed at 1.3271. The price is currently at 1.3277 with the high reached during the last hourly bar at 1.32908. The low occurred early in the London morning session at 1.3233. That low did take out the low from Friday and last week at the 1.32385 level. The move lower also fell below the 50% of the move up from the August 30 low. That level comes at 1.3251. It fell below that retracement level on Friday too. So the break lower was pretty much a failed break and that helped contribute to the snap back rally (albeit a modest one). The range for the day is still only 57 pips.

On the rallies today, the pair is finding resistance against the 200 hour MA (green line in the chart above). That MA stalled the rally on 3 separate occasions between Friday and again today. That helps to keep the sellers more in control (although you can argue that control).

I guess it is safe to say that although I like the price staying below the 200 hour MA, that traders seem to be battling it out with the 200 hour MA above (at 1.3292) and the 50% as close support below (at 1.3251). There is no US data today. Brainard speaks later. She is a FOMC voting member and the market has been highlighting her speech since last week. The Fed will be quiet after today as they put the muzzle on themselves a week before heading into the meeting starting on September 20 (they announce on September 21). So Brainard's words will be analyzed closely.

Also influencing the pair is the cross currency pairs. EURGBP is lower on the day which is supportive to the GBP but the GBPJPY is lower too. The GBPJPY move however, is more influenced by the JPY moves.