GBPUSD corrects 50% of the move down from the end of January high
200 bar MA on the 4-hour is providing overhead resistance as well for the GBPUSD
The GBPUSD that's great to 50% of the move down from the January 31 hi to the February 10 low. That level comes in at 1.30398. The high price today reached 1.3045. The price has waffled higher lower after reaching that level.
The GBPUSD has been helped today by the ousting of the Chancellor of the Exchequer Javid and replacing them with Rishi Sunak, the chief secretary to the Treasury. Sunak is more in line with the Prime Minister's fiscally stimulative ideas.
Looking at the hourly chart above, the pair is also trading between its 100 bar moving average on the 4 hour chart at 1.3042 (the 4 hour moving averages our overlaid on the hourly chart above) and the 200 bar moving average on the 4 hour chart at 1.30513.
Admittedly, the price has dipped back below the 100 bar moving average as buyers and sellers battle it out. The 200 bar moving average has not been broken however. A move above that level should solicit more buying with the 61.8% retracement at 1.30796 as the next targeted level.
On Monday, the price dipped below its 100 day moving average (currently at 1.29017 - see overlaid on the chart above), but the will below could not be sustained. On Tuesday, the price stalled just ahead of that 100 day moving average. That was the clue for the buyers. Yesterday the price stalled against its 200 hour moving average (green line currently at 1.29669). It took a couple tries to get back above that 200 hour moving average today but ultimately the buyers overwhelm the sellers and push the price higher