The 1.5700-1.5706 area in the GBPUSD is a key level for the pair. The 1.5706 level is the current 100 hour MA (blue line in the chart above). The 1.5700 level is the 38.2% of the 2012 trading range and also where the 100 day MA is near (100 day is actually at 1.5697 currently). The market has been above and below this area today. In fact the midpoint of the days range come in at the 1.5695 level. This is suggesting that the market is unsure of the direction it wants to go.
Eventually, the market will make up it’s mind and look to break away. A move above the most recent high at the 1.5718 will be eyed as an upside clue, while a move below the NY low at 1.5668 level will be needed on the downside. Currently, the price action has shown some upside potential with the price holding above the converged 100 and 200 bar MA on the 5 minute chart and the days midpoint at the 1.5695. The one run to the downside in the NY session failed to keep the momentum going. If the price can remain above this area, the buyers may look to take control for the time being.
