100 and 200 hour MA are converged below.
The GBPUSD is trading near midrange in an up and down price action today (midpoint is 1.2138).
The high today stalled short of the high from Friday and a swing area at 1.21749 to 1.21901. The high could only get to 1.2172. The fall from the high stalled just ahead of the 200 hour MA at 1.2102 (the low reached 1.2104).
So the high was a few pips short of a high target and a few pips short of reaching a lower target.
The rallly off the low in the NY session is lower than the earlier high (reached 1.2158).
Are sellers getting more anxious on rallies? It seems that way.
If the sellers are to push lower from here, the 100 and 200 hour MAs are now converged at 1.21006. That will be a key barometer on the downside going forward. Move below is more bearish.
On the topside, 1.2158, 1.21749 and then 1.21901 are all important upside levels. Get above, and there could be more of an upside squeeze (spec. positions in the GBP remain short).
For the day, there is a little of something for everyone. For the bulls.
- The price is higher on the day and
- Remains above the 100 and 200 hour MA.
For the bears,
- Lower highs over the last three peaks
- The price stalled at the lower end of the swing area
A battle is on, but the pair defined the extremes.