Can the pair stay above MA levels
The GBPUSD - like the EURUSD - is stuck in a narrow trading range today. The low to high range is only 48 pips. That well short of the 94 pip 22-day average.
At the session low today, the price did move back below its 100 hour moving average (blue line currently at 1.35875) but found support buyers ahead of the 200 hour moving average currently at 1.3565 (green line).
The inability to move lower, turned sellers the buyers, and the price pushed to a new session high. That move to the upside did take the price above the swing low going back to September 22 at the 1.3608 level, but momentum faded and the price has since returned back to retest its 100 hour moving average at 1.35875. The current price is just above that moving average level as I type.
The question for the day is can the moving averages hold support?
If the 100 hour moving average can hold support here, with the narrow trading range, traders would start to look toward an extension with the next key target area at the swing area at 1.36403 and 1.36537 (see red numbered circles). The high price from Monday and Tuesday both stalled near that area. A move above, would increase the bullish bias in have traders eyeing higher levels.
Conversely, if the 100/200 hour moving averages are broken to the downside, the bias would swing back in that direction. The buyers would've had their shot and missed.
Traders will look toward the 50% retracement at 1.35291. That is also near the lows for the week from Monday's trade at 1.35311.
