The GBPUSD has seen a modest move above its falling 100 hour moving average in trading today. Earlier in the Asian session, the price broke near 1.2267 and rose to a high at 1.22957, but reversed lower end closed back below the moving average line.
Over the last 3 hours of trading, the price is also extended above that falling line currently at 1.22557, but price action to the upside has been limited to 1.22697.
Clearly, there is some apprehension to the upside. Buyers and sellers are battling it out and waiting for the next shove.
Recall, that on Friday, the price of the GBPUSD took out the swing low from May 25, 2020 at 1.2159 and traded to the lowest level since May 18, 2020 at 1.21543. That move lower also took out Thursday's low at 1.21655 in the process, but could not sustain momentum on the break.
Sellers turned to buyers and closed near session highs for the day. As a result, there is some dip buying near 2 year lows. The question is "Can the buyers keep the momentum going?".
So far, getting above the 100 hour moving average and staying above is still a key hurdle that buyers are having trouble with.
A break above - with momentum - would target the 200 hour moving average at 1.23268 which would be a another key target to get to and through if the buyers are to take back more control. Failure to do that, and more momentum below the 100 hour moving average, and the sellers are still winning. The buyers are losing.
