GBP/USD moves lower to test the 100-hour moving average again
With the dollar looking sluggish amid the US-China trade rhetoric and the pound embracing the UK parliamentary summer break, the pair has been trading in more of a consolidative mood over the past few sessions.
Buyers tried to hold a break above the 1.2200 handle yesterday but ultimately that failed and price returned lower to test the 100-hour MA (red line) before inching back up towards 1.2180 and then now lower again to test the key level @ 1.2145.
If sellers manage a break below that, the near-term bias will turn more bearish once again. However, downside support closer to 1.2100 is still proving to be a tough spot to break in light of the current lull in Brexit developments.
As it stands, price is trading in “no man’s land” between both key hourly moving averages and until we see a firm conviction by buyers or sellers to break on either side, the choppy price action looks set to continue for a while yet.