Tests 200 hour MA in the process

The GBPUSD is moving back higher and has now erased the earlier NY session declines. The move to the upside has moved up to retest the 200 hour MA at 1.25489. That is a key level for both the buyers and sellers. A move above increases the bullish bias intraday.

Tests 200 hour MA in the process

The low in the NY session did see the pair fall below the 38.2% retracement and the swing low from July 8 around the 1.2506 - 1.2509 area. The break triggered stops and the price scooted down to 1.2479 before rebounding fairly quickly.

Contributing to some of the volatility in the GBPUSD is the impact from the EURGBP.

Looking at the hourly chart of it, the pair broke above a swing area at 0.9072-78, and then the 61.8% retracement at 0.90832 on it's way to a high at 0.9119.

Since peaking however, the price has since moved back down to retest the 61.8% retracement. A move below it and then the swing area (through 0.90725) would be more bearish. Hold....and the buyers remain more in control. Key level for the EURGBP too.