We know the 100 hour MA above at 1.24848 attracted sellers
The GBPUSD has chopped up and down in trading today.
What can be gleaned from the chart is that the 100 hour moving average (blue line in the chart above) is a solid ceiling. That moving average comes in at 1.24848. Two separate highs today stalled at 1.24826 and 1.24802 respectfully. Sellers leaned against the moving average level and pushed the price down on each occasion.
On the downside, we are currently trading just above the 50% retracement of the move up from the April 21 low at 1.24445 and the rising 200 hour moving average at 1.24416. Below that is a trend line connecting the April 21 low to lows from yesterday (see red numbered circles). That trend line was tested in the London morning session and found buyers. The trend line currently comes in at 1.2424. A break below that level would open the door for moves toward 1.2406-139, the 61.8% retracement at 1.23977, and another swing area at 1.2385-88.
With the lower trend line in the 200 hour moving average providing support in the current hourly bar, there is a battle going on between those levels the downside, and the 100 hour moving average above. The market is looking for the next shove. In the meantime, traders are leaning against the technical levels with the risk defined and limited.
