The price action today is up and down and waiting for the next shove
As BOE governor Bailey speaks, the GBPUSD is coming off highs for the day. The price action has been choppy with the choppiness coming around the 200 hour MA.
Yesterday, the price moved above the 200 hour MA for the first time since May 8th but quickly reversed.
Today has seen that same pattern unfold with 10 bars trading above and below the MA line at 1.22565. The "market" is unsure on what to do next, hence the choppy trading.
Of note as well is the 38.2% of the move down from the April 30 high is at 1.27905. The high price from yesterday reached 1.2295 before rotating back lower. The high today has come up short of that level at 1.22865.
So although the price is trying to get above the 200 hour MA, the 38.2% is proving to be another hurdle to get to and through. Failure to do so, and the correction is of the "plain-vanilla" variety. That is....the buyers are not showing their love to move the pair higher.
Taking a broader look at the daily chart, the 1.2240-653 area is home to swing lows from mid April and early May. We are currently trading just above that level at 1.2274
Buyers are trying to keep and make a play to the upside, but they need more "umph" in their effort. Stay above the 1.2268 level would be the best. Stay above the 200 hour moving average would be good. On the topside move above the 38.2% retracement at 1.22905 and the overall technical picture improves even more.
Fail at those levels and what we've seen off the lows just a plain-vanilla correction of a trend move lower in May.
