Early run higher reversed but buyers coming back in as I type....
The GBPUSD ran up in reaction to the ECB stimulus decision.
The initial run to the upside took the price back above the 100 day MA at 1.25593. Recall, the price moved above that MA yesterday, and moved to a high of 1.26145 (highest level since April 30). However, the rally fell well short of the upside target at the 200 day MA (green line in the chart above at 1.26618). Looking at the daily chart above, the last two swing highs from April stalled at the 200 day MA. That is significant. That MA is KEY going forward. Keep that in mind.
The fall back below the 100 day moving average currently tilts the bias intraday back to the downside. If the price is to go higher getting and staying above the 100 day MA is the first hurdle. The first look has failed so far, but the price is trying to reverse back toward that level.
Drilling to the hourly chart, the low price today did stall ahead of the underside of the broken trend line and the rising 100 hour moving average. Both of those levels currently come in at 1.2496. A move below each would increase the bearish bias.
As I type, the price is just starting to extend back above the 100 day moving average. Can the buyers remain in control and keep the price above the 100 day MA? That is what the bullish traders will now want to see.
