The GBPUSD moved higher yesterday but the price action was up and down choppy for most of the North American session. The price nevertheless, did extend up above its 100 hour moving average (blue line) - giving the buyers some comfort/control after a steady decline from the January 13 high (see hourly chart above).
In trading today, the Asian session lows found support against its broken 100 hour moving average. That gave the buyers the A-OK to move higher. In the early European session, the price did start to extend with more momentum to the upside.
That move higher was able to get above the 200 hour moving average (green line currently at 1.34825) and the 38.2% retracement of the move down from the January 13 high at 1.35066. However, the 100 day moving average at 1.35143 was the limit to the upside so far today. The key moving average gave traders cause for pause. The high price reached 1.35134 and rotated back down toward the 200 hour moving average.
The price over the last two hours has traded above and below that moving average level. Admittedly, there has not been a lot of momentum below the moving average, which keeps the buyers in play for additional corrective probing to the upside.
Having said that, however, getting above the 100 day moving average would be key (and needed) for the corrective move higher to continue .
PS. Last Monday the price moved below that 100 day moving average for the first time since January 7, and stayed below that moving average line on the corrective move higher on January 26. Staying below does give sellers some say in the bias of course
What does the price action today say on the 5 minute chart?
Drilling to the five minute chart below, the corrective move off the high price today, did stall against its rising 100 bar moving average (currently at 1.3481). The price also stalled between the 38.2%-50% of the days trading range. If the price can stay above those levels,, the buyers would still have intraday control in the short term. Be aware.
