Can it stay above the 100 hour MA.
The GBPUSD pushed higher in London morning trading, helped by better employment data (+222K vs 120K for employment change). The run higher took the price above a ceiling area from Friday/ Monday at the 1.3300 level, but momentum quickly faded and the break higher failed (the high reached to 1.33101).
The price has moved down to a NY session low at 1.3264. The 100 hour MA comes in at 1.32567. Key barometer level for the day.
Sellers looking for more downside momentum would need to see that MA broken in trading today. Yesterday it was broken and the price scooted lower, but like the break to the highs today, it too failed quickly, with the MA reestablishing as support.
For dip buyers, trade against the line with stops below.
So traders have put thier lines in the sand below and above and each has been breached over the last 24 hours. However, the aggressors were turned away.
Nevertheless, we need to put our faith in the levels for trading clues/bias and eventually there will be break and run. In the meantime, traders will use the levels for low risk trading opportunities to lean against until the break.
Pick your spots. Know your risk.
