200 day MA held like a charm for the 2nd time in April yesterday

The GBPUSD moved up this week, with the low for the week made in the first hour of trading on Monday at 1.2357. The high for the week was yesterday at 1.26426. That high corresponded with the 200 day MA at 1.2643. The 200 day MA also stalled a rally back on April 14. Two successful tests of the 200 day MA in April.

200 day MA held like a charm for the 2nd time in April yesterday

Today, the price has seen follow through selling. The price is testing a key support target at 1.25154 at the start of the North American session. Making the level so important from a technical perspective includes:

  • There is a swing area in teh 1.25137 to 1.25215 area going back to April 16 and 17th. Yesterday, the price raced through that level.
  • A upward sloping trendline connecting lows from April 29 and April 30 comes in at 1.2516 currently (and moving higher)
  • the 50% retracement of the move up from the Wednesday swing low to the high yesterday comes in at 1.25154

So there is a cluster of support at that level/area, and that is important for both buyers and sellers today. Hold the level and bounced and the longs/buyers have control. Move below, and the sellers hold the stronger hand with the 100 hour moving average at 1.2475 a potential target on further downside momentum today.