Finds some support at swing lows from Monday/Tuesday
The GBPUSD has trended lower mostly in the London session today. However, the move lower was helped by hold a topside trend that admittedly was broken yesterday, but could not accelerate to the upside. The hold of the trend line was a help for sellers confidence.
As momentum increased, the price fell below the 200 hour moving average at 1.2966, the 100 day moving average at 1.2960 and the 50% retracement of the move down from the February high. That level comes in at 1.29583.
The most recent breaks were below its 100 hour moving average at 1.29365 and a trend line at 1.2926.
The pair finally found support against day swing low from Monday and Tuesday at 1.2912 (see red numbered circles). The price over the last 3 or so hours fluctuated roughly between that low and the 100 hour moving average above at 1.2936. The price has moved above the 100 hour MA, but it is not in a hurry to the upside. Nevertheless traders will be eyeing the level for intraday clues, and the potential for more upside back toward the 50%/100 day MA area (up at 1.2960 area).
Overall (taking a broader look at the chart above), there has been a lot of ups and downs in the pair. What we know is the highs of late have been lower and the more recent lows have been higher. The moving averages are hanging in the middle of the range and swinging the bias back and forth.
Drilling to the 5- minute chart below, the trend move lower in the London session has seen the price retrace toward the 38.2% at 1.2944. A move above that level, and then the 50% and falling 100 bar MA at 1.29535 and 1.2954 respectively, would help the intraday bias with the 100 day MA another hurdle.
Until then (i.e, getting above the 38.2% first), the sellers are still in more control with the swing low from Monday, Tuesday and today a hurdle to get to, and through for sellers to be even more excited.
