The MA stalled the rally yesterday. Not today, but market price action is choppy and looking for more confirmation
The GBPUSD traded up to its 100 day moving average in trading yesterday, only to find more sellers. There was intraday support at the 1.2524 level (see post from yesterday outlining the price action). The price trade between the 100 day moving average above and the intraday swing level below - closing between those levels.
In the Asian session today, the price spiked above the 100 day moving average at 1.25646 and moved up to a high of 1.26097. Since then, the price has rotated up and down with support buyers trying to keep above that 100 day moving average.
In the early New York session, there has been some dips below the moving average level (the low reach 1.25533, but the price has since moved back above). There is choppy trading but the buyers are clinging to control above the MA level. However, that bias could see a shift on more trading comfort below the 1.25646 moving average level. Risk/bias should be defined there for the short term.
Key break. Key test. The battle is going on around the 100 day moving average. The market is looking for the next collective shove action of the buyers or sellers. The 100 day moving average should play a part in deciding the winner and loser. For traders, it's up to your bias preference. The good news is risk can be defined and risk can be limited.
