The GBPUSD is trading near unchanged on the day after moving down in the early European session and rallying back higher more recently. The move to the upside came as the EUR was getting hit during ECB Lagarde's press conference. The EURGBP has not been immune to the downward move, hence the relative buoyancy of the GBPUSD.
Looking at the GBPUSD, the price high did have a limit. The 200 hour moving average at 1.25549 stalled the rally.
Recall going back to June 1, the price has been paying attention to the moving average levels (just follow the blue and green lines in the chart above).
This week, the price has traded above and below the 200 hour moving average, but has used that moving average as a barometer more bullish or bearish. Yesterday in the New York afternoon session, the price moved up to test the 200 hour moving average only to find sellers. Today', the price retested that moving average and in the process, increased the levels of importance going forward. Stay below and the price has the opportunity to push to the downside. Move above, and the buyers assume more control from a technical perspective in the short-term.
Meanwhile, in the EURGBP, the pair initially moved higher (like the EURUSD) but ran into sellers near the swing area at 0.8586 to 0.85927. The price eventually moved back below the 100/200 hour MAs (blue and green lines) and the selling accelerated.
The price has moved below the low for the week and below a swing area between 0.8489 to 0.84946 but is finding some stall.
