Move below the 100 hour MA
The GBPUSD corrected off dip buying against the 100 hour MA up to 1.3106. The move back above the 1.3100 could not be sustained. The price moved back down (see earlier post outlining the levels).
The break of the 100 hour MA (at 1.30786) gave the earlier dip buyers a reason to get out/sell and the price moved down to test the 200 hour MA (green line at 1.30543). The low reached 1.30563.
What now?
The price sits between the 100 hour MA above and the 200 hour MA below. Between is the 50% of the week's trading range at 1.30645. We are trading a few pips off that mid point level. We are at a neutral level for the week. Not near the high. Not near the low. Just right.
Next week, the BOE will meet and the expectation for a rate cut sits at 47.7% (near 50%).
PS. Looking at the weekly chart below, the 100 week MA is at 1.2995 and the 200 week MA at 1.3055. The price is just above those MA currently. Above is the 50% retracement at 1.3167. The high this week stalled at 1.31677. The market from that perspective is mixed with the price below the 50% but just above the 100 and 200 week MA. Those levels will be in play in helping to determine the next run in the GBPUSD. The BOE may have a say in what way the run goes.
