Bounces off the 100 hour MA
Over the last 11 hours of trading, the GBPUSD has "settled" between the 100 hour moving average below (blue line in the chart below) and the 200 hour moving average above(green line in the chart below).
The 100 hour MA comes in at 1.4792 (the low for the day is 1.47944). The level bounced off that level London morning trading. Clearly traders leaned against the level to define and limit risk. The move paid off.
The corrective high off of that low - and just as NY traders were about to enter for the trading day - extended above the 200 hour MA to 1.4924 (vs 1.4900 for the 200 hour MA). However, that extension higher was rejected (chalk it up to volatility). Note that the 50% of the ridiculous move higher yesterday, also comes in near the 200 hour MA at the 1.4999 level. With both technical levels there, expect to find sellers on any test in trading today.
So the range is set for trading and the price is currently between the extremes.
Looking at the 5 minute chart, the price is below the 100 bar MA ( blue line in the chart below) at the 1.4876 level. The 38.2% retracement of the days trading range is also at that level. If the price were to move above this resistance, note that the 1.4901 level is the 50% of the days trading range. This also corresponds with that 200 hour moving average and the 50% of the move higher on the hourly chart. Needless to say, this solidifies the 1.4900 level as a key resistance for the GBPUSD today and going forward. .
