100 hour moving average and 38.2% retracement key support
The GBPUSD is lower in the day by consolidating between swing level resistance above and moving average/retracement level below.
Looking at the hourly chart above, the pair today tried to stall at 1.33684 in the Asian/early European trading. However that level gave way and the fall extended down to test its 100 hour moving average (blue line in the chart above). The subsequent corrective move higher retested the swing levels once again only to find sellers.
The fall back lower has once again found support buyers against its 100 hour moving average currently at 1.33302. Just below that level at 1.33178 sits the 38.2% retracement of the move up from the August 24 low.
So the battle is on between support at the 38.2% retracement/hundred hour moving average between 1.33178 and 1.3330 and the resistance against the swing area near 1.33684. . The price currently trades between the levels at 1.3351. Which way will the next push be?
Fundamentally, recent headlines out of EUs Barnier poured some cold water on the Brexit negotiations saying "I didn't see any change in the UK position this week". On the positive side, he did add that he still thinks a deal is possible.
