Lots of chop…
The GBPUSD chopped lower in early trading today. The low for the day reached down toward the low from Wednesday, but could not breach the level. This was after trying to run below the 1.21745-788 swing area. Honestly, it is a choppy mess on the hourly chart.
The failure to make any headway lower, and weaker US data (?) has helped to send the pair back higher (EURGBP moving lower is also an influence). The pair more recently moved above the 200 hour MA, and in the process, moves the pair in the middle of a series of MAs including the 100 hour at 1.2222 and the higher 200 bar MA on the 4-hour chart at 1.22345. The high just reached the 100 hour MA (reached 1.2223). Currently we trade in that yellow MA area 1.2205 to 1.22345.
For traders….I would expect a move back below the 1.2205 and then 1.2200 should give more confidence the high is in place.
Conversely, it will take a move above the 100 hour MA at 1.2222 and then the 200 bar MA on the 4-hour at 1.22345, to ruin the bearish technicals.
Overall though, the chop in the pair – especially over the last few days, is no fun…..
PS of course there is a lot of headline Brexit news that could be an influence in this pair /currency which will make it more difficult as well.