GBPUSD test the 200 hour moving average/50% retracement hurdle

Technical Analysis

Author: Greg Michalowski | gbpusd

Both technical levels come in at 1.3994

The GBPUSD is higher today for the third day in a row, but in the process, just successfully tested a key resistance target defined by the 200 hour moving average and 50% midpoint of the move down from the June high. Both those levels come in at 1.39940 . The high price just reached 1.39924 - just short of that dual technical level. The current price trades at 1.3984.

Both technical levels come in at 1.3994
The pair yesterday moved above its 100 hour moving average (currently at 1.38992 and flattening out). It also extended back above its 100 day moving average enclosed just near that level at 1.3944.

In the Asian session today, the price corrected below that 100 day moving average at 1.3944, but did not get close to testing its 100 hour moving average (at 1.3899).  The low price reached 1.39229.  However after moving back above the 100 day moving average, sellers turned buyers rather quickly and the price has remained above that key moving average level (the 38.2% retracement of the June range also happens to be right at that 100 day moving average as well).

If the rebound is to continue, getting above the dual resistance at 1.3994 would have traders looking toward the swing high from Thursday at 1.4008. Above that and traders will be looking toward the swing low from June 15 at 1.4033.

Stay below as traders lean (with stops above), and a rotation back below the 100 day moving average (38.2%) at 1.39448, would increase the bearish bias.
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