The 100-bar moving average on the 4-hourly chart is defended
And that continues to show that buyers are not giving up on the upside momentum since mid-August just yet. Looking at the hourly chart:
Near-term bias still favours buyers as well as price remains above both key hourly moving averages. Bids around 1.2850 are yet to be tested as the 100-bar MA on the 4-hourly chart provided an area for buyers to lean on in the recent downside move today.
But in spite of all the positive signs, the key remains the 1.2900 level for the time being. Much like EUR/USD's struggle to get above 1.1600, the 1.2900 level is just as tricky for buyers in GBP/USD.
Overnight moves saw the pair climb back above the figure level after tracking below it when the dollar was bid in European trading. However, buyers were unable to hold price above it as the greenback stays underpinned during trading today.
From the daily chart, there is added resistance above the 1.2900 handle from the 50.0 retracement level @ 1.2938 and overnight highs (1.2936) just failed shy of testing that:
While the upside momentum remains intact still, clearing the 1.2900 handle and getting above the daily resistance @ 1.2938 will be the next key hurdle for buyers. As for sellers, move below the 100-bar MA on the 4-hourly chart @ 1.2859 will be the first step in establishing some tailwind to drive price towards the 100-hour MA @ 1.2824. Move below that and it will break the near-term bullish bias in the pair.