GBPUSD test 100 hour MA. Bounces on the last test.

Market traders are being cautious as talks to continue later in the week

The GBPUSD just dipped to re-test it's 100 hour MA at 1.34459 level and found cautious buyers against the MA level. The price is trading back up at 1.34595.

The market reacted negatively to the BBC reports that there would be no agreement today. That sent the price to a new session low at 1.3411. That tumble was short lived, however. Juncker and May both said that progress was made. There are tough negotiations ahead but they will continue and expect a resolution.

The attitude from trading seems to be a bit more cautious as a result. The bounce off the 100 hour MA, seems to suggest that if traders are to get involved, they would look to do it where risk can be defined and limited. On the topside, the 1.3532 was the swing high from back in 2016 post the Brexit decision. I would expect that traders might look at that level as a "lean level" (low risk) on a bounce higher.

We trade at 1.3465 now.