GBPUSD moves lower and tests 100 hour MA
The price of GBPUSD is falling the US dollar higher after better numbers for GDP, initial jobs claims, durable goods orders and even the trade deficit. The ECB raise rates by 25 basis points but that has not helped that currency as ECB’s Lagarde said that the economy was deteriorating recently.
Looking at the hourly chart, the data sent the pair back below its 200-hour moving average and 38.2% retracement at 1.29311. Note that earlier in the day, the price bounced off of the 200-hour moving average before moving to a new session high. The bounced off the 200 hour moving average increased the moving average’s importance going forward and when the price move below it in the last hour or so of trading, buyers turn to sellers quickly.
The move to session highs today in the European session briefly moved above a swing area between 1.2970 and 1.2989. A high price for the day reached 1.29949 before rotating back to the downside.
What now?
The price has moved down to test its 100 hour moving average of 1.2878. A break below that level will have traders targeting the 50% midpoint of the range since the June 29 low. That level comes in at 1.2866. Move below that level and traders will target a swing area between 1.2834 and 1.2848. A upward sloping trendline also cuts across near that level (see green numbered circles on the chart above)