GBPUSD buyers making a play
Pushing away from the 200 hour MA after earlier apprehension
The GBPUSD buyers are making a play in the GBPUSD.
The price for the pair moved higher on the higher UK inflation data today, but failed on the first break above its 200 hour moving average (the break above the 200 hour moving average was the first since October 29).
The subsequent fall did take the price back down to retest its 100 hour moving average (blue line currently at 1.34173), where buyers came in and pushed the price back above the 200 hour moving average for the second time.
Like the first time, the price once again moved back below that 200 hour moving average line, BUT it did hold support against a swing line at 1.34493 (see red numbered circles). That level was a swing low on November 8 and also a swing high on November 15.
Holding that level and moving back above the 200 hour moving average with more momentum, was a clue for the buyers. Lower yields have also been a small tailwind for dollars selling.
A new high was just reached at 1.34936.
The next target comes in just above the 1.3500 level between 1.35032 and 1.35093 (see green numbered circles). Above that is the swing low from November 9 at 1.35228 followed by the 38.2% retracement of the full move down from the October 20 high. That level comes in at 1.35363. That retracement level is the minimum target retracement if the buyers are to make a serious run at taking back more control.
For now however, the buyers are making a play with the move away from the 200 hour moving average. Risk is now that moving average. A move back below that level would disappoint and likely lead to further downside momentum. Stay above however, keeps the short term bulls in control with targets ahead.