The GBPUSD is higher on the day in sympathy with the dollar selling after the weaker US jobs report.
However, the move to the upside did find willing sellers near a swing area target area between 1.2644 and 1.2667. That area did stall earlier rallies this week ahead of the interest cut by the BOE on Thursday.
The price has since moved lower and is back below the 200 bar MA on the 4-hour chart at 1.28042. That MA will be a barometer for buyers and sellers in the short term.
If the price can stay below that MA, the 38.2% of the range since the April low at 1.2759 would be the next downside target. Move below that, and the low from the week near 1.2710 will be eyed/targeted ahead of the 100-day MA and the 200-day MA at 1.2683 and 1.2646 respectively.
If the 2000 bar MA can be rebroken, followed by the aforementioned swing area between 1.28449 and 1.2867, the now falling 100 bar MA on the 4-hour would be targeted right below the natural resistance at 1.2900.
This article was written by Greg Michalowski at www.forexlive.com.
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