GBPUSD chops up and down in trading today. Slides down from the 200 hour MA test yesterday | Forexlive

The GBPUSD is chopping up and down in a confined trading range today. The high for the day reached 1.21387. The low was down at 1.20789. The 60 pip trading range is much lower than the 177 pip range over the last 22 trading days (around a month of trading). There is room to roam on a break. Be aware of the potential (higher or lower).

Looking at the hourly chart, the lows today have been able to stay clear of the rising 100 hour moving average. That currently comes in at 1.2073. A break below the 100 hour moving average would tilt the technical bias more to the downside.

Recall from Wednesday, the price rise (of the Tuesday low) found sellers near that falling 100 hour moving average (see blue line in the chart above). In trading yesterday, after breaking above in the early Asian session, sellers turned to buyers and that led to a sharp move to the upside on increased buying momentum.

The buying yesterday ended after the price broke above the 50% midpoint (at 1.21799) of the move down from the high last Thursday, and tested its 200 hour moving average (green line in the chart above). Sellers leaned against that key moving average barometer. This time buyers turned back to sellers, forcing the price back to the downside.

Going forward, with the “market” using the 200 hour MA level as a risk defining resistance level, it increases the levels importance going forward. It would take move above to increase the bullish bias from a technical perspective. That moving average currently comes in at 1.2162 (and moving lower).

SUMMARY: So overall, the 100 hour moving average is support for the GBPUSD at 1.2073. On the topside, the 200 hour moving average is resistance at 1.2162. In between keep an eye on the 38.2% retracement of the move down from last Thursday’s high (BOE day). That level comes in at 1.2128. IN the North American session today, the price has already seen a stall near that level on a test.Stay below tilts the short term bias in the favor of the sellers.