GBPUSD tries above its 100 hour moving average one

The GBPUSD reached the lowest level since July 2020 last week at 1.2410 and moved higher on Friday. That move took the price above its 100 hour moving average for the first time since April 22.

However momentum could not be sustained,and yesterday saw the price action above and below the 100 hour moving average (blue line currently at 1.2525) as traders ponder the next move (it was a UK). The New York session saw a move lower with the price closing comfortably below the moving average level at 1.24904 on overall dollar buying (the US dollar was the strongest of the major currencies yesterday).

In trading today, the pair based against a swing area between 1.24905 and 1.25022 before moving up over the last hour or two of trading to a new session high – and back above the 100 hour moving average.

I know there been a number of failed breaks of that moving average over the last 3 , trading days but traders must still respected as a risk defining level. Stay above would be more bullish. Move below is more bearish.

Like the EURUSD (see post here), there is more to prove from the buyers if they are to take more control from the sellers.

Getting above the 1.2601 to 1.26145 swing area is a step number one. Step number two and step three involve getting above the 200 hour moving average at 1.2666 currently (green line in the chart above) , followed by the 38.2% retracement of the move down from the April 21 high at 1.26698.

Those upside targets are the minimum to get to and through if the buyers are to take more control from the sellers.

For now, respect the 100 hour moving average as risk once again, and hope for increased upside momentum off of that level.