Forex technical analysis: You are supposed to buy 50% and 200 hour MA tests

200 hour MA at 1.5585. 50% of the move up today is 1.5587

The GBPUSD has pushed down to the 50% of the days move higher and the 200 hour MA (green line in the chart below)at the 1.5585/87 area. The combo is supposed to be bought with a stop below.

The GBPUSD has been one of the more volatile pairs over the last few days, although today, the pair has been more supported. While the EURUSD was testing earlier day lows and the USDJPY and USDCHF made new highs, the GBPUSD has wandered down to this point. Yes it is off the highs (see earlier post), but relatively speaking, it is fairing better.

Tomorrow is the BOE decision, meeting minutes, and inflation report in a first ever (welcome to the 21st century). Needless to say, the risk from those events are high. So buying against the level is just a low risk trade idea.