200 hour moving average at 1.25718. 100 hour moving average at 1.25837
The GBPUSD has retraced to a new London session high and in the process has move back to retest its 200 hour moving average 1.25718. Just above that level is the 100 hour moving average at 1.25837. Traders will be using those levels to help define the shorter term bias going forward. Stay below is more bearish. Move above and the bias tilts back to the upside (and the ups and downs continue for the pair).
In the Asian session, that 200 hour moving average was broken, tilting the bias more to the downside. The low for the day did stall ahead of its 38.2% retracement target at 1.25092. Recall from Tuesday’s trade the price stalled near that level, before breaking below triggering stops and then rebounding quickly to the upside once again.
The price action today suggests an underlying bid remains against the 38.2% retracement. It would now take a move below that level -with momentum – to tilt the bias more to the downside. A break below that level will likely be dependent on whether or not the 200/100 hour moving average can hold resistance now. Stay below and the bears remain in control (with hopes for a rotation back to the downside and that 38.2% retracement support area.