The 100 hour MA stalled the rally earlier today
The GBPUSD has breached the 100 hour moving average at 1.29378. The price rise in the London morning session stalled against that moving average level (see blue line in the chart below), and corrected back toward the close from yesterday before basing and moving back to the upside. The move above the 100 hour moving averages is the first look since February 3.
Looking at the hourly chart, the next target come in at the 1.2956-61 area. That is home to swing lows and highs from February 5 and February 7. Above that the 1.2974-77 area will be eyed. The lows from January 28 and January 30 come in that area.
Overall, the move to the downside from the January 31 high fell about 337 pips. The 38.2% retracement of the move is up at a nice round 1.3000 level. The falling 200 hour moving average is just above that level at 1.30037.
Getting above the 100 hour moving average is a key hurdle for the bulls/buyers. Earlier in the day the low for the day stalled right ahead of the 100 day moving average. That also was a bullish development.
Having said that, there is a lot of overhead resistance. If the buyers are serious, they would need to get back above the 38.2% retracement as a minimum and the 200 hour moving average as well. Absent that and the sellers still remain firmly in control in this pair.
Nevertheless for today the buyers are more in control. Risk is now the 100 hour moving average.
