The 100/200 hour MA (and 100 day MA) stalls the rallies
The GBPUSD continues the chop but with modest upside bias. Having said that, the pair has run into topside resistance defined by a cluster of moving averages including the:
- 100 hour moving average at 1.37605,
- 200 hour moving average at 1.3773
- 100 day moving average at 1.3780
The high price has stalled just below the 200 hour moving average (reached in the early European session).
The low for the day was reached in the early hours of the Asian session against the 38.2% retracement of the move up from the October 6 low at 1.37228. The European/US low just reached just below a swing area between 1.3734 and 1.3742, but is now bouncing.
As I type, the pair is trying to extend above the 100 hour moving average, with hopes for making another run at the 200 hour moving average above. A move above the 200 hour moving average would still have to deal with the 100 day moving average at 1.37807
Taking a broader look, since October 15, the pair has been mired in a volatile up and down choppy range. The highs from October 19, October 20 and October 21 stalled at 1.3833 area. Those highs were tested on Tuesday's trade with a high price reaching 1.38287, but sellers leaned against the troubled top and pushed price back to the downside (and through the cluster of MAs in the process..
The low for week reached yesterday, stalled right at the low from last week at 1.37085. Like at the top where there were three tops, there are now three bottoms at the lows since October 15.
In between those extremes sits the cluster of moving averages which is the fulcrum of the up and down see-saw seen since October 15. The buyers and sellers should react to those MA. So far today, the sellers are leaning. I would expect stops on a break above.
