Forex technical analysis: GBPUSD tests 200 hour MA/50% retracement

Technical Analysis

Author: Greg Michalowski | gbpusd

Trades at new session highs

The GBPUSD is up testing the 200 hour MA and the 50% retracement at the 1.3381 area. This is nothing new as the ups and downs over the last 5 days has seen the price move above and below the MAs.  Nevertheless, the convergence of the 200 hour MA and 50% tends to create a stall point on a test.  We will see as liquidity conditions are light.  

On the downside, earlier in the day, the pair's price stalled against a lower trend line and bounced (see green circled numbers). That gave the buyers a reason to take the price higher and the sellers a reason to cover shorts. That line will be eyed on any moves lower, with a break being more negative/bearish.

ON the topside, a move above  the 1.3381 area has another trend line not too far away at 1.3389. The 61.8% of the move down from the Dec 15 high comes in at 1.33996 (call it 1.3400).  The 1.3417-19 area was swing highs from last week and will be a key swing level on a test.  

For the time being, the 50% and 200 hour MA should give sellers a reason to lighten up in the holiday trading.