The GBPUSD is mired in a 45 pip trading range today. That is well below the 82 pip trading range that is the average of the last 22 trading days (about a month of trading).
That 45 pips have seen a number of ups and downs intraday. The low was reached in the London morning session with the price moving down to a low for the day at 1.3169. That level was still above the low from yesterday's trade at 1.31588 (which was the lowest level going back to December 2020). The low yesterday bottom near the 38.2% retracement of the move up from the March 2020 trading low at 1.3161 (see post from yesterday outlining that bounce HERE). That level remains a key support level going forward. Stay above keeps the buyers in play. Move below and the bearish bias increases.
The move off today's low is now pushing the price back above the 1.3200 level. The price is currently trading at 1.3210. That is near the high price from the late Asian session at 1.3215. A move above that level and traders will look toward 1.3220 swing level and the falling 100 hour moving average currently at 1.3235.
During Tuesday's trade, the price moved above that moving average level for about five or so hours before failing and moving back lower. On Monday, the price tested that moving average and found willing sellers.
So getting above the 100 hour moving average and staying above would be a key bias shift for the pair.
Having said that, the 200 hour moving average (green line currently at 1.32694) has not been broken since November 22. Getting above that moving average would also be a key requirement if the buyers are to be taken more seriously by market traders.
