100/200 day MAs at 1.2722 area
As outlined in a post from yesterday (CLICK HERE), the GBPUSD was down, but approaching some key support defined by its 100 and 200 day moving averages.
Today those moving averages settle around 1.2722 (bid side). The price in the London morning session, moved lower helped by BOE Bailey's earlier comments at the time, to test those moving averages. The low price for the day did tick to a low price at 1.2711 - below the MA levels - before snapping back higher.
Although the pair dipped below the MA line (see the 5 minutes chart below), the move was short-lived (less than 5 minutes). The price over the next 45 minutes snapped back higher all the way to 1.2837 (126 pips off the low).
Since then, the price has moved down, up and down with the low price holding above the low from yesterday at 1.27746 (the low reached 1.27788 – see 5-minute chart below). That level will be eyed as an intraday support level. Stay above keeps the buyers in play. Move below should be more bearish.
What else?
Looking at the hourly chart, the pair is near mid range for the day and also trading near the close from yesterday at 1.28128 (the price is currently trading at 1.28050). The 38.2% retracement of the range since last Wednesday comes in above at 1.28238. That was also near a ceiling from the Asian session today. A move above that level should be little more bullish at least intraday. A move above that level would have traders targeting the high price today. That high stalled near the 50% retracement (and swing area) between 1.28587 and 1.2865. Move above that area and the 200 hour moving average at 1.28845 would beon traders radar.
Conversely, if the price can stay below the 1.28238 level, there could be a move down toward the swing lows from earlier September and yesterday between 1.27614 and 1.27754. Taking another look below those levels should solicit a retest of the key 100 and 200 day moving averages.
