GBPUSD moves above swing area
The GBPUSD was able to get above resistance area at 1.24717 to 1.24840. The break (see the number of tests of that area going back to March 27), led to sellers covering.
However, the run higher did stall at the 100 hour MA (blue line) at 1.25133. In an earlier post I commented:
The current hourly bar corrected back up toward the low of that swing area and backed off. Intraday, staying below the 1.2484 level would keep the sellers fully in control. A move above and we could see a run back up toward the 100 hour moving average at 1.25117.
That is what happened.
What now?
Well, the pair trades between a battle line below at the 1.24717-84 and a battle line above at the 100 hour MA at 1.25133. We could see a waffle between the levels as the bearish bias today is a little more muddy on the failed break below the key swing area.
The trend since April 7 is more positive (the price move his higher since then). However, the holding of the 200 hour MA yesterday and sharp fall today (along with breaks of levels) showed that sellers have some power too. That creates the battle and traders need to respect each sides strengths as the next move is figured out.
