What’s with that ride? The GBPUSD has been on an up and down roller coaster over the last 7 or so trading days and today has not been the exception. Up. Down. Up. Down. Up. Down. Up. Down. Up. It is making be quesy. Today, the price plunged after moving below the 100 hour MA, fell below the 200 hour MA and then stopped just below the low from yesterday (at least some respect of technical levels is occuring). When the market moved back above the 200 hour MA (green line currently at 1.5495), the price shot back up above the 100 hour MA at the 1.5530 level, taking out the high for the day in the process. That move was rejected and NY and the price has started to move back down.
The price is looking to move below the 100 hour MA in early NY trading at the 1.5529 level (bearish). Stay below and the that 200 hour MA 1.5496 and double bottom at 1.5473 may be in the markets sights. Although the ride is indeed wild, the price action does seem to be following the clues from the moving averages and the range bound trading. Tops. Bottoms. 100 and 200 hour MA. They all seem to be providing the risk defining clues.