EURGBP exerting an influence
The GBPUSD moved back below the 100 day MA at the 1.2470 level. The low just reached 1.2457. This was just short of the reactionary low after the payroll number at 1.24558. Is the market playing with us? Is it just happy trading above and below the 100 day MA for a while? It seems that way as the price has snapped back higher and trades but up toward the 1.2500 level again. The price of the GBPUSD has been below the 100 day MA on 4 separate hourly bars today (the last 3 hourly bars) and each move below, failed. That is not encouraging for the sellers. The rallies off the fails have been quick but contained.
An influence- on the GBPUSD - is the EURGBP which pushed to new highs. The price moved above the 100 bar MA on the 4-hour chart in the last hour or so of trading. That MA held resistance (for the most part) this week. The move higher has also taken the pair to new highs for the week (taking out Tuesday's high at 0.8633). With the GBPUSD moving back higher now (testing the 1.2500 level), the EURGBP is also dipping back lower and trades below the 0.8633 level
If we are to go lower in the GBPUSD, keeping the EURGBP supported might will be needed. Watch 0.8624 (high from yesterday) and the 100 bar MA on the 4-hour chart at 0.8616 for clues. Stay above and there could be another push higher (and another test lower in the GBPUSD). The 100 day MA looms ahead at 0.86538 though. That should prove just as sticky as the 100 bar MA on the 4-hour.
Overall, the price action is not the best in the GBPUSD. The EURGBP is making a honest try to move higher, but it is also stalling a bit. Market is a bit untrustworthy as we head into the weekend I guess.