The 100 hour MA is key going forward
The GBPUSD remains in a three day up and down range. That range is large at over 500 pips (low on Friday was at 1.14083. The high is the Friday high at 1.19328. The low is the Friday low at 1.14083. That is the wide. What is inside that from a technical perspective?
On the hourly chart above, there is a swing area in the short term at 1.16866-1.17123. Get above and the important 100 hour MA at 1.17445 is the most important level for the bulls going forward. On Friday, that MA was broken for the first time since March 10, but that breaks failed. The price need to get above and stay above for the bulls to take more control. Failure and the sellers are still in full control.
On the downside, the underside of a broken trend line comes in at the 1.15072 level. Just
before the rally higher on the Fed news, the price based against that level. Admittedly the price has move back below that level on Friday and again in early Asian trading today, but I will look for that level to be a barometer going forward on the downside. Move below and the low from last week at 1.14083 will be targeted.
Drilling to the 5 minute chart below, it shows the choppy up and down price action around the 100 and 200 bar MAs at 1.1625 area. The market is unsure of the direction. On the topside, the 1.16528 to 1.16753 is home to a number of swing levels over the last two days. Get above and stay above is more bullish.
SUMMARY: Overall, the intraday price action is choppy up and down as the market is unsure from these levels. If the buyers are to take back more control, however, they need to get above the 100 hour MA. Intraday get above a swing area at 1.16528-753 would give the buyers a little tilt in their favor.
