Buyers take a breathe after first test of 100 day MA since March 10
The GBPUSD tested its 100 day moving average for the 1st time since March 10. That moving average comes in at 1.25693 on my chart (bid side). The high for the day reached up to 1.2575 and backed off.
Drilling to the 5 minute chart, the price action and technicals (MAs) show the selling near the 100 day MA, but is also showing support buyers near the 100 and 200 bar MAs.
This week (yesterday and today’s trading), has seen buyers near the 100 and 200 bar MAs. The last test was against the 100 bar MA. Buyers leaned and have pushed higher.
The 100 bar MA currently comes in at 1.25313. The 200 bar moving average comes in at 1.25121. If the 100 bar moving average is broken, traders will look toward the 200 bar moving average for confirmation that the high is in place.
For now the support is holding. The buyers are holding support. However, the 100 day MA puts a formidable opponent against the bulls. If the buyers are to keep firm control (and stay above these shorter-term moving averages), they will need to take on the 100 day moving average and beat it.