Swing area going back to December 24 stalls the fall
The GBPUSD is bouncing back after a run to new week low failed near a swing area going back to December 24 (see blue numbered circles and lower yellow area). That swing area comes between 1.35212 to 1.35347. The low today reached 1.35367 – just above the high of that area – and have fought back higher. The pair just moved back above the 1.3600 level.
On the topside, the 100 hour MA at 1.36225 is the next target to get to and through if buyers are to take more control. That is near the high of a swing area between 1.3613-1.36225. The price has traded above and below that MA over the last two days.
The break lower today, found more downside momentum with the price moving below an upward sloping trend line (see green numbered circles), and the 200 hour MA (green MA line), but has retaken those levels on the corrective move higher.
Traders will now need to see what levels take more control? Does the 200 hour MA at 1.35711 provide support or will the 100 hour MA above at 1.36225 stall the rally. PS the 100 hour MA is flattening out perhaps indicative of a tired (to the upside) market.