The GBPUSD moved higher with the flow of funds favoring European currencies (esp. the EUR) after the comments from Russian officials earlier today.
The GBPUSD price move to the upside has been limited, however, as risk focus traders leaned against its 100 hour moving average at 1.31609. The high price reached 1.31591 and backed off. The current price is trading at 1.3134.
Looking at the hourly chart, the pair moved lower in the London morning session. Consumer credit rose at a larger than expected rate to 1.876 billion versus 0.843 billion. This is up sharply from 0.143 billion in January and may suggest that consumers are tapping out of savings as costs increase.
The low price for the day fell short of the last swing low going back to March 16 at 1.30421 (the low price reached 1.30499). The move back to the upside was able to extend back above the swing low from March 22 at 1.3118, and above the earlier session high just below that level 1.31148.
The price of the GBPUSD has been able to stay above those levels since the break higher. Intraday, that level will be eyed as close support. If the price can stay above, there remains the hope that the 100 hour MA at 1.31609 and the higher 200 hour MA at 1.31715 can be broken.
Having said that, the price still need to get above the MA levels, and so far sellers are successful in leaning against that moving average. Absent that, and rise off the low is just a rise into resistance.
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