The technical story on the GBPUSD is shifting a little more with the buyers trying to take back some control.
Recall from yesterday (see post here), the pair fell below a swing area between 1.3133 and 1.31858. The price closed below that swing area for two days, but has returned back into that area on the corrective move higher today.
So far, however, the price has remained below the upper extreme (at 1.31858). The high price has reach 1.31799.
The good news for the dip buyers is that the low price off of that high has also remained above the lower extreme at 1.3133. The low price reached 1.31362 and has bounced modestly to the current level 1.3168.
So the price is within its own traders purgatory with buyers and sellers battling it out within the daily swing area.
Drilling to the hourly chart below, should the price move above 1.31858, it would next have to extend above the falling 100 hour moving average at 1.31961.
The price last traded above that 100 hour moving average on Thursday of last week, but the attempt to extend above that level ultimately gave way.
That break back below the moving average on Thursday has led to the four day’s of declines into today. That move saw the price move from the 100 hour MA level at 1.3373 level down to the low yesterday of 1.30808.
Going forward, get above the 100 hour moving average and the bias gets a little bit more bright for the buyers (as long as the price can stay above that moving average level).
