Bullish run yesterday runs out of steam and reverses back lower
The GBPUSD moved higher yesterday on the lower dollar started by more dovish comments from Fed’s Powell. The run higher took the price above the 100 and 200 hour MAs (blue and green line) and also back above an old trend line – reestablishing the line as support (see red numbered circles).
Today, the run higher ran out of steam ahead of the 38.2% retracement. The price moved back below that old trend line (bearish), the 200 hour MA (more bearish) and the 100 hour MA (even more bearish). Bias tips to to the downside once again.
The low today fell toward a lower trend line from recent lows. The pair trades between the 100 hour MA above at 1.2794 and the trend line below at 1.2747.
The pair is trading in a broader range between 1.2722 and 1.2882 over the last 10 plus days. In between are technical levels like the 100 and 200 hour MA, trend lines and a retracement level. Traders seem to be paying attention to the levels as outlined above. They are also being flexible in their bias as news events swing sentiment.