100 day MA held support too after reaching ....
The GBPUSD moved lower in the Asian session, and since that time, has waffled back and forth.
The waffle to the upside stalled ahead of the 200 bar MA on the 4-hour chart. Last week, that MA was a stalll area for the pair.
The waffle on the downside went to the ledge defined recent swing lows in the 1.2382-87 area, and stopped. The low reached 1.23821.
Another level of importance today is the 100 day MA at 1.2403. ON the last dip, the price stalled against that MA level.
We trade at 1.2428 as I type. The 200 bar MA is at 1.2441. The buyers are trying to keep the recovery going, but that MA looms ahead. An interim support level that may be in play is 1.2411-17. Going back to mid January, there were a number of swing levels there.
Let's be honest....the pair is lower BUT there is a lot of waffle between nicely defined levels. It is not like the ledge we tested did now lead to rebound in the past. So it can happen again. Traders need to respect the up and down price action at extremes/key MAs like the 100 day MA and the 200 bar MA on 4-hour/and/or swing levels. Lean and hope the market agrees. Then pick your targets out and hope the market can reach those levels.
PS If the 200 bar MA at 1.24413 is broken, the 1.24649-769 will be eyed (200 and 100 hour MA). ON the downside the swing low from Feb 7th at 1.2346 is a target on a break of 1.2382.