The GBPUSD has seen momentum dip to the downside in early New York trading, helped by the break through the 100 hour moving average. That moving average currently comes in at 1.26055. The level represents a risk defining level for sellers who are looking for more downside in the short-term. Stay below keeps the sellers happy.
Having said that, the run to the downside stalled right at its 200 hour moving average currently at 1.25591 (and moving higher). Holding that level gives those traders who are more bullish some comfort.
So there is a little something for both buyers and sellers from a technical perspective today. Traders who like the upside can lean against the 200 hour moving average at 1.2559 as a risk defining level. A move below would be needed to increase the bearish bias.
Conversely, sellers who think the run to the upside has run its course in the GBPUSD, could use the 100 hour moving average as resistance and a risk defining level. Stay below is more bearish.
Which way do you like?
The moving averages will help define the next momentum bias, but for now, the buyers and sellers are battling it out between the levels.
