High reached 1.27064 today
The price of GBPUSD rallied with the general dollar decline today. That move took the price above the 1.2700 level which is an area that the market has used to tilt the bias up or down. The move above should have been bullish. Instead, the price stalled and moved back down.
The move lower, has taken the price back below the 100 bar MA on the 4 hour chart. That level comes in at 1.26835. That will be a risk level shorts from above (and a barometer for bulls and bears).
ON the downside, the broken 38.2% of the move down from the November high, comes in at 1.26473. A lower trend line comes in at 1.2630.
In addition to the broken 38.2%, if the selling does intensify more, the 100 hour MA is near a trend line on the hourly chart below at 1.26254. The 200 hour MA is at 1.26115.
Patient buyers should show interest at the 100 hour MA/trend line level (stops below the 200 hour MA).
