The GBPUSD fell back below the 100 hour and 100 day MAs in the London session. The bias shifted lower with "work to do". The 100 day MA and the low of a swing area near 1.19836 and 1.19867 respectively was the targets. The low reached 1.19917 and stalled. Buyers leaned early against the key levels.
The price has moved higher and is NOW back above the 100 and 200 hour MA between 1.2010 and 1.20169. The current price is at 1.2028.
What now?
The price action shows a lot of ups and downs for the pair.
Since February 15, the price has traded between 1.1914 and 1.21469. IN between sits the rising 100 day MA currently at 1.19836. With the MA rising, it makes for an easier downside target to get to and through. However, on the break last week, the price stalled near the falling 200 day MA and the lower swing area and bounced. The 200 day MA is now near the lower extreme of the range since Feb 15. So although the bias is more negative, the extreme of the range and the 200 day MA become other targeted level.
The other technicals tools in play are the 100/200 hour MAs. As the price waffles up and down, the price also moves above and below those MA levels. It is part of the shifting winds as traders look for more certain direction. Those MAs are short term barometers. Trade below and traders look toward the lower targets. Move above and they look for the higher targets.
Traders hope the 100/200 hour MA prove some momentum in the direction of the break, but ultimately, the price will need to make a break below 1.1914, or above the 1.21469 to get the pair out of the quagmire.
Until then, the interim levels between those extremes will be explored, tested, broken or not broken. So follow the targets. Try to trade near them. If the momentum in the direction of the break increases, look toward the next targets. If the break and momentum fails, get out and recognize the shifts in the bias.
