Closes near the lows for the week but choppy trading and close not as bearish after holding support
The high for the week in the GBPUSD was in the first bars of the new trading week. In fact, the close on Friday at 1.2595 was never traded. The high price this week was 1.2589. The low was reached on Friday at 1.2301. That was just below the 61.8% at the 1.23077.
Keeping things simple for this pair, the move lower today, saw the price move below the lows from last week at the 1.2350 level and that level is where the 200 bar MA on the 4-hour chart is found. That combination will make that price level a bullish/bearish borderline in the early part of next weeks trading. Stay above and it is more bullish. Move below and it is more bearish.
If it stays above, traders will want to see the 100 bar MA on the same chart to be taken out. That comes in at 1.2383 currently. Earlier in the day on Friday that MA held support. On the break below it, the buyers turned to sellers. So highlight that level as a key level on the topside in trading next week.
On the downside, a move below the 200 bar MA on the 4-hour chart, will look toward the 1.2300-077 area where the 61.8% and the lows for this week are located. The 1.2275 level will be another level to eye. Below that level, and the pair will be entering a consolidation area from the mid to end October trading area.
The price of the GBPUSD is trading near the lows. However, the correction off the 61.8% and above the 200 bar MA on the 4-hour neutralizes the pair a bit. We will see how the early action next week goes. The bullish and bearish levels are defined.