Suspension at MA level
GBPUSD went down sharply yesterday and is modestly lower today. EURUSD had a day down yesterday – closed lower – and is higher today.
This pricing has been aided by bidding in EURGBP over the last two days.
Looking at the hourly chart, the pair reached a peak on Tuesday near the 38.2% retracement at 0.85334. On Wednesday, a lower correction found support buyers close to the 100-hour moving average.
Yesterday, the price rose away from the moving average level, broke over 38.2% retracement and rose.
Today, although there have been ups and downs, the pair has risen and risen in the NY session to test their key’s 100-day moving average of 0.85886. This moving average has risen over the last four trading hours. The high price reached 0.85883, just below this MA level.
Next week, traders will focus on this 100-day moving average, which is the next key barometer for buyers and sellers. Stay down and we can see a return to the midpoint of the 50% range from a high of 0.8559 on July 20th.
Move higher and bullish bias continues with upward probing (if the price stays above 100 days in MA).