Stalls at the first look
The GBPUSD is trading in a really narrow 50 pip trading range. It was lower before the last move to new highs. That move stalled just ahead of the 200 hour MA and the 50% retracement at 1.25258 area. The high just reached 1.25242.
The 100 hour MA below (at 1.2488 currently) has seen the price move above and below it for most of the day. The 100 bar MA on the 4-hour chart at 1.24744 has not been broken. The sideways/non trending pattern today suggest traders are just not sure of the next move...yet. Be on the lookout for the break out of the yellow area in the chart above....
Honestly, the price action yesterday helped contribute to that uncertainty. The pair first moved down 140 pips which is a pretty good move. At the low the price stalled at the 50% of the move up from the January low at 1.2345. The price then raced up 200 pips (stalled near the 200 hour MA - green line).
What is more bullish for the pair is that the correction of the trend move higher (see 5-minute chart), has stalled just ahead of the 38.2%. The buyers are more in control. We are back up testing the 200 hour MA as I type. Key level.
