Low after earlier spike, remained above the 100 hour MA
The GBPUSD is climbing back toward the upside resistance area in the 1.21749-901 area (still a nut to crack above).
Earlier today, the price raced up to the area on the Merkel comments, but were turned away on the test (see post here). The price rotated back lower, but the 100 hour MA (blue line in the chart above), did stall the fall (see blue line at 1.21125). The buyers remained in control after the “news” shift back to the upside.
Now as the “yellow area” is approached “the market” will need to decide, do we take the news as a crack in the armour that might lead to a solution? Or does the wall ahead stall the rise?
Look for low risk sellers to lean against the area. However, if there is a break above, I would expect the sellers to quickly turn to buyers with a run toward the August high as the next target.