100 hour MA holds
The GBPUSD has spent most of the trading day in the red today.The pair closed yesterday at the 1.50346 level. The high could only get up to 1.5039 or so. The low extended down to 1.49587.
At the low the pair was testing the 100 hour MA (blue line in the chart above). Yesterday, the low also found support buyers against the level.
Looking at the 4 hour chart below, the price rotation lower took the pair below a swing high area between 1.4980-93. The recovery off the bottom has reestablished support against that level over the last two bars. The 1.4980 level seems to be a level on the hourly and the H4 chart. Keep an eye on this level for today.
With the claims, Markit Mfg index and now new home sales coming in stronger, the US fundamental picture should say lower dollar. The UK side says retail sales were not so hot either and the election should not be a help. So that points to watching the levels, and expecting two way action. Currently, however, the buyers are showing a desire to buy the dip.
