GBPUSD extended above the 200 hour MA but backed off

Technical Analysis

Author: Greg Michalowski | gbpusd

The move above the 200 hour MA was the first since March 11

The GBPUSD extended above its 200 hour MA for the first time since March 11. The 200 hour MA is currently at 1.18913 (and moving lower). The high price extended up to 1.19724 at the highs. The current price is down at 1.1865.  The 200 hour MA is now upside resistance.  

On the downside, there is a lower trend line at 1.1846 that connects the lows from the last two days.  

The move above the 200 hour MA was the first since March 11
Those are the close levels that traders should look to for support/resistance.  

Taking a broader look at the weekly chart, the run higher today was able to get above the low from 2016 at 1.1840, and briefly above the low from 2019 at 1.9578.  The price has since moved back below the 2019 low but remains above the 2016 low price.  When the price fell below the 2016 low, that took the price of the pair to the lowest level since 1985.  Move back below that level would sour the short covering rally seen over the last few days of trading. It kinda dovetails with the trend line on the hourly at 1.1846.  Be aware.

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