The GBPUSD high prices on Friday and today could not get to the swing high area
The GBPUSD pushed higher on Friday and in the process based near the 100 hour MA (see chart below), broke above the 200 hour MA (green line) and raced toward a topside swing area/ceiling between 1.3745 and 1.37582. The high price could only get to 1.37393 before settling into the weekend.
In the Asian session today, the price opened lower but moved back toward the highs and traded to a high price of 1.3740 - still short of the low of the swing area at 1.37451. Buyers turned to sellers, and the price tumbled lower.
Not surprisingly, the price has returned back to its 200 hour moving average currently at 1.3683 and the moving average has stalled the fall. The low price did dipped below to 1.36795, but momentum has clearly slowed. The price is currently back up retesting the underside of a broken trend line at 1.37029.
What next?
Stay below that trend line and the sellers should make another run at the 200 hour moving average and follow that up with a test of the 100 hour moving average at 1.36688.
Needless to say if both of those moving averages can be broken, the bears/sellers would cheer and the dip buyers could see more selling toward the 50% at 1.36590.
If the 200 hour moving average can hold support, the pair - which has been mired in the up and down range (sans the failed break lower last week on Thursday), the pair would be staying in the upper half and above the MA. So that is more favorable to the buyers/bulls. With the price above those MA levels, although lower today, the dip buyers are also making a play on the correction lower today.
