Dollar moving lower
The GBPUSD has made a mini-break to the upside with the 200 bar MA on the 4-hour chart leading to a move higher. That MA is now close risk for longs.
Having said that, the price has moved up to the 200 hour MA at 1.24637 and stalled. There is quite a bit of overhead resistance.
- The 100 hour MA comes in at 1.24678 -
- Above that is the 50% of the move down from the Friday high. Yesterday, the market stalled against the 100 hour MA AND the 50% retracement.
- The 100 bar MA on the 4-hour chart is also in play at 1.2473
So far, the break touched the 200 hour MA and has backed off a bit. It has been able to stay above the 1.24487 MA line below (200 bar MA on the 4-hour). So buyers are trying to stay in control. Look for the buyers to lean against the 1.2448 area.
Admittedly, there is a lot of stuff above to get to and through, but remember as well, at the lows today, the 100 day MA stalled the fall. That is bullish. How bullish is the question now? Get through the 50% at 1.24755 and we could see another run with the 1.2497-1.2500 the next upside target (61.8% and the natural 1.2500 resistance).