Stall at the key MA level
The GBPUSD trended sharply to the downside yesterday and is modestly lower today. The EURUSD had an up and down day yesterday – closing lower – and is higher today.
That price action has been helped by a bid in the EURGBP over the last two days.
Looking at the hourly chart, the pair peaked on Tuesday near the 38.2% retracement at 0.85334. The correction lower on Wednesday found support buyers near its 100 hour moving average.
Yesterday, the price surged away from the moving average level, broke above the 38.2% retracement and took off to the upside.
Today although there has been ups and downs, the pair has pushed higher in the NY session and has moved up to test its key 100 day moving average at 0.85886. That moving average has put a stall on the upside over the last four trading hours. The high price reached 0.85883, just short of that MA level.
Next week, traders will focus on that 100 day moving average as the next key barometer for the buyers and sellers. Stay below and we could see a rotation back to the 50% midpoint of the range since the July 20 high at 0.8559.
Move above and the bullish bias continues with more upside probing (as long as the price remains above the 100 day MA.