Does not happen often on the daily chart.
The GBPAUD daily chart shows the 100 and 200 day MA converged at 1.2924-26 and the current price right around that level at 1.7930 at the moment. It is not often when all three converge on the daily chart. I call the convergence "Three's a Crowd". When you have that dynamic, the market is at an equilibrium, neutral level. Typically, the market moves away from that neutral level.
Drilling to the hourly chart below, the price did move below the 100 and 200 day MAs (overlayed on the chart below), but stalled the fall at a lower trend line.
The price has bounced higher off that line, and in the last few hours moved above the 100 and 200 day MA lines again.
Decision time for traders. Does it continue the fall that has dominated in October, or do we get a run higher after a failed break below the 100 and 200 day MAs?
