Trades back above the 100 hour/100 day MAs
The GBPUSD moved back higher today after a sideways-ish market yesterday.
Recall from last week, the GBPUSD ran higher and saw the pair form a double top near 1.39827 (on Thursday and Friday). The pair corrected lower into the close on Friday before the up and down session yesterday.
Today the move to the upside has seen the price extend back above moving average levels including the 100 hour moving average and 100 day moving average. Both of those moving averages come near the 1.3918 to 1.3920 area. The price has just dipped back below those levels trading at 1.3914. The high today reached 1.39380 at the start of the North American session.
The pairs 100 day moving average at 1.3920 was broken to the upside on Thursday for the first time since June 24, but fell back below on Friday. In trading yesterday the price tried to move above but failed once again. With the current price back below after breaking higher earlier today, it is threatening to fail on the break higher for the third time in as many days.
Despite the "ups and downs" around the dual moving averages, they still represent a barometer for the trading bias. Move above is more bullish/move below is more bearish.
However, with key events like Fed's Clarida speaking tomorrow, and the always important US jobs report on Friday, the markets may be "buying time" in choppy price action around the key levels until there is a clearer picture from the Fed members (Fed Gov. Waller joined Fed President's Bullard and Kaplan on the hawkish side yesterday/today) or from the economic data.
As a such, on a break lower watch the rising 200 hour moving average 1.3858 has a support target.
Conversely, a move higher (lower USD) should have traders targeting the double top from last week's trading at 1.3927.