Traders are taking the pair up and down today
The GBPUSD is lower on the day but the pair has also defined clear support and resistance targets.
On the downside, the price tested the 100 hour moving average, then broke below. However, the dip below stalled at a swing level at the 1.28216 (see red numbered circles) and quickly rebounded. The subsequent lows reestablish the 100 hour moving average as the support level at 1.28286 currently. The price is just above that level now at 1.2833.
If the price is to extend lower technically a break below the 100 hour moving average and then the 1.28216 level will be eyed for more bearish confirmation.
Failure to break however, could lead to a rotation back to the upside as sellers turn back to buyers.
Key test for both the buyers and the sellers.
The highs today stalled at the 1.2856 area. Just above that is the falling 200 hour moving average at 1.2862. Note that in yesterday's trade the price raced up to that 200 hour moving average only to find sellers were leaning against the level. That increases the levels of importance technically. Move above it and stay above would be more bullish.
The GBPUSD will have it's fits and starts as a result of the election. CPI data released earlier today was a touch weaker than expected at 1.5% versus 1.6%. That is also below the BOE target of 2%.. Of course there exists a lot of uncertainty still in the country which can lead to sharp moves on political headlines (witness the Farage headline from Monday).
