The 200 hour MA and trend line held support in the Asian session.
The GBPUSD has retraced back to the 100 hour/day MAs near the 1.2388 area after moving toward the highs from last week (near 1.38337 - the high reached 1.38287 today). The holding of both those MAs will be eyed by traders for bias clues in what has been an up and down market near high levels since October 19.
The low to high range since October 19 has come between 1.3734 and 1.3834 (or 100 pips). The 100 hour MA has seen price action above and below over that time frame, as had the 100 day MA (both are near converged now). Price action can consolidate around key moving average levels as traders decide the next shove (higher or lower).
The run to the upside today came after the pair found support buyers near the rising trend line and the 200 hour MA (currently at 1.37648). Although as mentioned, the 100 hour MA has seen price action above and below, the 200 hour MA has seen support buyers near that MA level. Yes, the price has seen some small dips below it yesterday and again today, but the dips have been shallow and quick.
For the short term today, with the high for the day stalling ahead of the highs from last week and the recent low against the 100 hour/day MAs, those levels become the barometers for buyers and sellers.
A move below the 100 hour/100 day moving average would tilt the bias more to the downside with the 200 hour moving average as the next target.
Conversely, stay above those moving averages and traders target 1.3812 to 1.38149 area, ahead of the highs from today, and last week near 1.3828 to 1.38337.
