In what may be "par for the course" going forward as the market awaits things like the CPI, the Fed and the New Year, the GBPUSD moved up to the target 100 hour MA and swing level nears 1.22212, and backed off to the next downside target support at the 38.2% of the move up from last week's low at 1.21739. In other words, the price action is doing what it should do near technical levels when overextended on the top or bottom side - with interim technical levels also in play (see earlier post outlining the levels).
Earlier today, the lower extreme was tested - and broken below the 200 day and 200 hour MAs, but that did not last, and the price rotated back higher on the disappointment (was the lower extreme).
So we trade midway-ish between the 100 hour MA above and 200 hour/200 day MA below. The 38.2% is near that mid area and gives traders a barometer mid-range to stick a trading toe in the water.
Ultimately, traders will look for breaks outside those ranges with momentum
