The GBPUSD ceiling and floor established. 100 hour MA in between.
On Tuesday, there was a retest of the highs from Monday and last week, only to find willing sellers in the 1.2987 to 1.3011 area (the high reached 1.3000 and backed off).
The fall from those levels, came on the back of the disappointment from the rejection of the PM Johnson Brexit schedule. The market now awaits the response from the EU as to the timetable going forward.
The swing highs going back to October 17 at the 1.2987 to 1.3011 is now the clear ceiling for the pair going forward.
The price action back to the downside on Tuesday and into Wednesday, moved to test the low from last Friday at 1.2838. The low stalled just ahead of that level and there has been a wander higher. The floor is set at the 1.2838 area. That floor is now also joined by the rising 200 hour MA at 1.2833.
So overall, the trading range is set from 1.2833-38 on the downside, to 1.2987-1.3011 on the topside.
In between is where the price has been trading today. Also in the middle is the 100 hour MA at 1.29195. The price action today did see that MA breached on a run to the high at 1.2948. However, weaker European PMI data sent the price back down to a low of 1.28746. That also put the price back below its 100 hour moving average at 1.29195.
Sellers seem to be reestablishing the 100 hour moving average as resistance now. Stay below is more bearish. On the downside keep an eye on the 1.28727 level. Not only is it near the low for the day, but also near the low price from early Monday's trading.