Rebounds after test of 100 hour MA found buyers today
The GBPUSD is trading to a new session high. The US stocks have moved back toward the black in the major indices and that is helping to push the USD lower.
Technically, the price of the GBPUSD did move lower initially in the Asian session in a continuation of the NY afternoon session move lower that took the price in the red for only the 2nd time in 8 trading days by the close.
The low, however, did find support buyers ahead of the 100 hour MA (blue line) currently at 1.25657. The buyers reentered and that helped to rebound the price higher (albeit in a choppy fashion).
Another level of importance comes between the 1.2591-998 area. This area has been home to highs and lows on the hourly chart this week (see red numbered circles). Today, the price chopped above and below that area as traders wrestled with the next directional focus.
However, buyers seem to be taking more control with the dollar selling being the catalyst (at least for now).
The high for the day yesterday reached 1.26688. The 200 day MA is up at 1.26873. If the price support can now hold (with 1.2591 and the rising 100 hour MA as a barometer for the bullish bias now), those targets will be in traders eyes as the next key targets. The GBPUSD last traded above its 200 day moving average back on June 11. The price traded above and below that moving average for 5 trading days. Recall that in April, the price highs stalled against that moving average level.
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