The GBPUSD buyers had their shot to make a move today. After bouncing off a key support level at 1.2938, the price surged higher, breaking above the 100 hour MA, 100 day MA, and 200 hour MA.
However, despite achieving this technical breakthrough, the buyers failed to sustain momentum. On two separate occasions, the price pierced the 200 hour MA at 1.2986, only to fade and retreat.
Currently, the GBPUSD is trading between the 100 hour MA at 1.2962 and the 100 day MA at 1.29699. This range will be crucial in determining the pair’s next move.
If the price falls below this range and fails to recover, traders will likely target the 1.2938 level, a significant swing point that has provided support earlier (see chart below). A break below this level would add to the selling pressure.
This article was written by Greg Michalowski at www.forexlive.com.
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