Pair moves back toward unchanged level at 1.2869, but finds buyers
The GBPUSD has waffled lower, and then higher. We moved back down toward the close from yesterday at 1.2869 in the early NA session (low reached 1.28676 just below that closing level), and are seeing some buying. The "market" is probing with buyers and sellers fighting it out against technical hurdle levels.
The high today reached 1.2901 which was just above some swing highs from Monday and Tuesday (see blue circled numbers). Admittedly, that area was breached yesterday on the way to a test of last week's highs at 1.29356. But that rally stalled just ahead of that high level (high reached 1.29313).
So yesterday's high stalled at prior high. Today's highs stalled at earlier swing highs for this week (and lower highs). That seems to suggest sellers are at the least trying to put a lid on the pair. Close risk for shorts is the 1.2900 area. A momentum move above that level would not be welcomed.
What about the downside?
What shorts need from a technical perspective _in addition to getting below the close at 1.2869) is a move below the 100 and 200 hour MA.
Earlier today, the 100 hour MA was broken (blue line in the chart above), but those breaks stalled ahead of the 200 hour MA. The shorts gave up. The price has not been below the 200 hour MA since August 20.
If the sellers/shorts are to feel more comfortable, those MAs need to be breached. Get below (at 1.28606 and 1.28427) would open up the downside a little more.
So there seems to be a topside ceiling at 1.2900 but buyers are also not giving up. Watch 1.2869 and then the 100 and 200 hour MAs. The fight is on. The levels are known.