Bears keep the price below the 200 hour MA
The GBPUSD moved to a new session low at 1.21202. That was just above a a swing low back on July 30 at 1.21181. On Monday, the price also bottom on an hourly bar at 1.21172 and bounced.
The price has moved lower (the August 1 low reached 1.2079) but in the up-and-down trading seen over the last 7 days, traders can latch onto intermediate levels as they arise. On the topside, the highs today are forming a high near prior swing highs around the 1.2190 level The price is already back up to 1.2139 and looks toward the 100 hour MA at 1.21452.
Another thing we have seen in the consolidation is that the 200 hour MA has moved down toward the price action. That MA is currently at 1.2191 which was near the highs for the day today. The 100 hour MA is going sideways, with traders trading above and below it.
This is typical in a market that is consolidating after a move (in the GBPUSD case lower). The market is waiting for the next push, with the bias still favoring selling rallies.
The meat of the ranges is 1.2118 to 1.2191. A move outside the range will have traders looking for momentum on the break. The sellers are more in control, but that does not mean dip buyers are not around at the right levels In between the range has the 100 hour MA as a barometer but be aware as the market waits for the shove, the price action can swing around the level too.