Third time's the charm for GBP/USD buyers?
GBP/USD tests the 100-hour moving average again
Buyers have tried to break above the 100-hour MA (red line) on two previous attempts this week but failed to sustain a firm break above as price fell back down thereafter.
The 100-hour MA now sits @ 1.2730 and we're running up against it in trading now. The pair is trading in a rather subdued range but sterling seems to be the only decent mover in what has been an otherwise sluggish start to the session.
If buyers manage to hold above the 100-hour MA, it will eliminate the near-term bearish bias in the pair and start to allow for more conviction for a move/retracement higher. The next level above this will be yesterday's high @ 1.2754.
The dollar in general is a little weaker across the board but it isn't translating to anything notable just yet. Given the lack of action to start the day with, I'm still looking to play the pair on the basis of selling the rallies. Summer days like this either makes for good retracement plays or they can end up as a boring one. So, let's see if we get any follow through in the hours to come.