GBPUSD retraces back up toward 200 hour moving average

The GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term has fallen for three consecutive days, but is seeing buying today.

The move to the upside today has reached back toward its 200 hour moving average (green line) currently at 1.36382.

Recall from yesterday, the price cracked and moved away from that key moving average (green line in the chart above). Although there was a brief break below the level in early January and earlier in the day yesterday, the European session saw the price move further away from that moving average level for the first time since December 21.

Now with the price moving back up toward that moving average line, sellers and buyers have battled against the moving average line over the last few hours ( currently at 1.36382). The high price did reach 1.3644 and 1.3643 on two separate modest breaks of the moving average level, but could not sustain momentum toward its falling 100 hour moving average at 1.3659 currently (blue line). Sellers are trying to put a lid on the pair against what was old support.

What next?

For buyers getting above the 200 and 100 hour moving averages are the next steps. For sellers, a move back below the swing area low at 1.35978 would give the sellers added confidence intraday

The Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term's Bailey is speaking now and could obviously be an influence. The market traders will be paying attention to his comments to see if further rate hikes are in play. The Bank of England did hike rates in December by 0.25%.

The UK CPI came in today at a 30 year high of the 5.4%. That is also helping to give the GBP some support