38.2% retracement, 100 hour moving average and swing area stalling the fall
The GBPUSD has been trading above and below its 200 day moving average over the last 3 trading days. The highest high was on Tuesday. Today's high took out yesterday's high, but could not keep the bullish momentum going.
The price has moved back down and in the process got close to a cluster of support defined by swing lows and highs going back to July 9 through July 13 (and July 20), the 100 hour moving average at 1.26648 and the 38.2% retracement at 1.2669. The low today reached 1.2672 - just above that cluster area.
As I type the 200 day moving average is being rebroken. Buyers and sellers seem to be ignoring that moving average line over the last few days. That says to me that they are unsure of the next move.
My trading inclination is focused on the aforementioned cluster of support area. Although the last few days has seen moves below that area and those breaks fail, if the price moves below again, I would expect a bigger reaction. Until then, however, the buyers are more in control with work to do at the swing highs over the last few days as targets to break.
