100 hour MA and trend line key on the downside. Can an old ceiling/floor stall the corrective move
Last Friday, the GBPUSD peaked above a swing high at 1.3337 area (high from October 23rd), but stalled and wandered lower into the weekend. On Monday, the price regrouped and made a higher run, only to stall just ahead of the top line trend line target and fall back down.The price fall took the price back below the 1.3337 level where it has stayed for the last 8 or so hours.
The fall lower did have a limit though. The price stalled at the 100 hour MA (blue line currently at 1.33067). That MA and a lower trend line at 1.3297 (and moving higher) are support now. Stay above keeps the buyers more in control.
Is there a hurdle above to eye that would give the bulls more control?
The 1.3337-405 will be eyed for more bullish potential. The 1.3337 is the swing levels (see blue circled numbers). The 1.33405 is the 50% of the move down from the September high (see chart above). That level held back in October and in last week's trading before the failed runs higher on Friday and yesterday. A close above that level would be more bullish technically.
In the London session,
- The BOE UK bank stress test results
- The BOE Financial Stability report
- The Financial Policy Committee report
will all be released at 2 AM ET/0700 GMT. At 2:30 AM ET/0730 GMT Governor Carney will give a press conference of the financial stability and annual stress test results.