100 hour MA and 200 bar MA on 4 hour stall the rall.
The GBPUSD fell in morning London trading but rebounded and erased the day’s declines coming into the New York session. However, the run higher ran into overhead moving average resistance defined by the 200 bar moving average on the 4 hour chart at 1.22955 and the 100 hour moving average at 1.22972. The high price peaked at 1.2297 before rotating back down. We currently trade at 1.2267.
The move back down is testing – and now going through – the low from Friday and last week at the 1.2270 level. After holding moving average resistance above, the sellers may be quickly back on the horse. If the price can stay below the 1.2270 level, that would be bearish. What we also know is a move above the moving averages would be a higher risk for the shorts (although there are a lot of levels above including trend lines at 1.2309 and 1.2327, the 38.2% retracement 1.2347 and the falling 200 hour moving average at 1.23692..
Drilling to the 5 minutes chart below, the run higher just corrected back to its 100 bar moving average of the 5 minutes chart and 50% retracement at the 1.2263 and 1.22615 levels respectively. A move below that level I.22615 would be more bearish and have traders looking back toward lower intraday levels including the 61.8% retracement 1.2253, the earlier swing low at 1.22507 and the days low at 1.2226.