Trend lines converging
The GBPUSD moved lower in the London morning session and cracked below a lower trend line but that break failed.
The sellers gave up. The price moved back higher. The 100/200 hour MA and 200 bar MA on the 4 hour chart was rebroken. Admittedly, the price has been waffling above and below those MAs with little respect over the last few days. However, the lower 100 hour MA (blue line) has been holding intraday support over the last few hours. Stay above that level (at 1.2309 currently) is a close risk level for buyers now (barometer for bulls and bears).
The upside has a topside trend line at 1.2324 to get to and through (and remain above technically). Above is the 38.2% at 1.23475. On Friday, the price action took the price above that area on three separate times, but the momentum. stalled.
The price action for the pair is …..well…. showing a little bullish and a little bearish. That seems to make sense given the Brexit situation.
In such an environment, if you don’t have a bullish or bearish bias, it might make sense to stay out of the market, until you see a failure of a break.
On Thursday, the pair moved above the 50% and 100 bar MA on the 4 hour chart and then failed.
On Friday, the fall below the MAs failed. An the rises above the 38.2% failed.
Today the fall below the lower trend line failed.
Let the market’s failures dictate the trade and then look for buyers to turn to sellers or sellers turn to buyers. Just a thought in the uncertain market technically and fundamentally.