The price decline cannot sustain momentum below its 100 hour moving average/38.2% retracement
The GBPUSD traded to the highest level since September 28 yesterday and in the process pushed against the swing area between 1.36403 and 1.36537.
The high price prices for the day yesterday reached 1.36422 and 1.36472 between that swing area before tailing off into the close.
In the new trading day today, selling intensified and the price ultimately rotated back below its 200 hour moving average (green line) currently at 1.35765, and 100 hour moving average (blue line) currently at 1.3559. However, the last few hours has seen a rebound with the price moving back above the 100 and 200 hour moving averages.
The question technically is now can the price remain above the moving average levels?
Sellers need a rotation back below the 100 hour moving average at 1.3559, and the 38.2% retracement of the move up from the September 29 low at 1.3557. Break below those levels and stay below would have traders looking toward the swing low from Monday near the 50% midpoint of the move up from the September 29 low at 1.35291.
On the topside watch the 1.36082 level is a level to get and stay above. Following that the swing area at 1.36403 to 1.36537 remains the topside barometer that would increase the bullish bias on a break above.
