Price has been trading above and below the converged MAs over the last 3 days
The GBPUSD breached below the 100/200 day MAs on Tuesday for the first time. The pair has been trading above and below the key barometer MAs (and converged MAs) over the last 3 days.
Today (looking at the overlay of the MAs on the hourly chart), the MAs come in at 1.2718 (200 day MA) and 1.27267 (100 day MA). Like the last two days, the price has traded above and below those MAs in the Asian session. In the London morning session, however, the price moved above those MAs and based against them. The buyers are making a "play" technically.
There are hurdles ahead which make the road ahead difficult. The highs for the day have stalled ahead of the recent swing highs at 1.27823 (although they did move above the highs from yesterday briefly). The price also stays below the falling 100 hour MA (blue line in the chart above) and 38.2% at the nice round level at 1.2800. Those are targets that would need to be broken if this "play" well....plays out in the favor of the dip buyers seen today.
All ideas of a move higher go out the window on a break back below the MAs. That's just the way it is.
PS. The move higher today got it's inspiration from UK's Finance Ministers Sunak announced new jobs scheme. In his words, "The main goal is to support jobs, but we need to change how we do this". Believe it? The UK is fighting hard to stop a 2nd wave of the Covid 19 as is Europe. Can they slow that train down? Of course Brexit continues to exert its mostly negative influence.
