Stay below the 100 hour moving average is more bearish
The GBPUSD has been able to stay below its 100 hour moving average (blue line) for most of the day. There was and earlier peek above the level (but it was only by a pip or so). The high price off the employment report also took a quick peek above the level (less than a pip) and rotated back lower. The 100 hour moving average comes in at 1.23976.
The pair is trading back toward unchanged levels on the day. The close from yesterday was around the 1.2360 level. The current price is trading at 1.2364. On the downside of marked a swing area between 1.2350 and 1.2357 as a little to get to and through. Admittedly, it’s not the best of levels. However, the volatility from yesterday’s trade did later see a basing against the 1.2350 toward the end of the day and into the early part of todays trading. We will see what happens.
For the week, the 1st hour of trading on Monday, and a Tuesday swing high shared the high for the week at 1.24825. Note, that the high on Monday and Tuesday each stalled against its 100 hour moving average. So for the week, the price tested its 100 hour moving average on FOUR separate occasions and each one found sellers. That’s key going forward.
The low for the week was reached yesterday on a reactionary selling below a lower trend line. That level came in at 1.2266 before the sharp rebound back to the upside.