The GBPUSD moved lower despite stronger CPI data in the UK today. That move to the downside took the price near the 200 hour moving average at 1.26844. The price has bounced off of that level, keeping the buyers in play in the pair (watch video above).
On the top side, the rising 100-hour moving out to 1.27779 is the next key upside target. After the CPI, the price did spike above that level but quickly reversed turning buyers into sellers. Getting above that level is needed to increase a bullish bias going forward.
The current price is trading between those levels.
Traders will now eye the 1.2700 area as close support if the buyers are to stay in the game. A move below the 200-hour moving average would likely lead to more selling. The 38.2% retracement at 1.26413 (see chart below) will be the next target. On topside, the 100 hour moving average remains a key target to get to and through.
GBPUSD bounces near the 200 hour moving average