Moving away from the 100 and 200 hour MA again
The GBPUSD has been trading in a choppy up and down range over the last day or so.
On the downside, the 38.2% retracement of the move down from the April 2 high comes in at 1.22809. That retracement level held support during the London morning and New York session yesterday and again today. Staying above gave buyers little more confidence.
The price is now testing/ticking above the high from yesterday (and the week) at 1.23833, and in the process, away from the 100 and 200 hour MAs at 1.2313 and 1.23436. Admittedly, the price has traded above and below those moving averages over the recent choppy trading. Nevertheless, with the run higher over the last 4-5 hours, there is some momentum higher that traders must respect.
PS the move higher is also moving above a topside trend line at 1.2353.
Overall, buyers are making a play. Can they get out of this up and down rut and run higher? Watch the broken trend line at 1.2353. Stay above and I would trust the move. Move below and the waters are muddy.
