The GBPUSD has been respecting its hourly moving averages. Going back to last week, the price found support against the 200 hour moving average (green line), found resistance against the 100 hour moving average (blue line) and then found resistance against both moving averages on June 2 and June 3.
Yesterday, the swing high in the GBPUSD moved above its 100 hour moving average, but stalled against the 200 hour moving average. The subsequent move to the downside saw momentum in the Asian session today. In the process to the downside, the pair moved below previous lows and also the 38.2% retracement of the move up from the May 13 low at 1.24705.
However momentum could not be sustained (found support near 1.24355 swing area, and the price snapped back higher.
Where did the snapback rally stall?
Near the 100 hour moving average of course (blue line).
The current price is at 1.2484. The 38.2% retracement at 1.24705 remains a target level to get to and through and stay below if the sellers are to assume more control (there is a old swing area down to 1.24656 as well). Move below that area and stay below would give sellers more confidence. Bounce off that level and sellers turn to buyers as the ups and downs continue..
What we know on the upside is that it would take a move back above the 100 hour moving average - and stay above - to give the buyers more hope (followed by a move above the 200 hour moving average). Until then, the tilt in the intermediate term is still in the favor of the sellers. Those ceilings against the moving averages have become a pattern.
