Stays below the 100/200 hour MA
The GBPUSD moved lower on two separate moves. The first move lower, found early buyers ahead of a swing area defined by recent highs (initially) and lows going back to July 29 at 1.3003 to 1.3012 (see green numbered circles and lower yellow area). The 2nd test at the lows fell right down to the 1.3003 level and found buyers again. The support floor is solid. It would take a break below to tilt the bias even lower.
The bounce higher has now taken the price up toward the broken 61.8% retracement of the recent range since July 30 along with another swing area. All come between 1.3054 and 1.30607. The initial move higher in the London session saw the price extend above that area only to back off. A move back above should see more momentum with the falling 100 and 200 hour moving averages and 50% retracement between 1.30805 and 1.3086 as the next key target.
Overall, the GBPUSD has been trading up and down (see red box), but the last 3 or so days has traded with more of a bearish tilt below the 100 and 200 moving averages. The floor is solid. The market has proven that. However, it will need a move back above the 100 and 200 hour moving averages to tilt the bias more to the upside. Without that, the sellers are still in control.
