December 7, 2022

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GBPUSD bounces to a new high and tests 200 hour MA

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200 hour MA being tested at 1.41655 in the GBPUSD

The GBPUSD spent the London morning session chopping its way to the downside. The pair moved toward a swing area between 1.4110 and 1.41152.  The low price bottomed at 1.4111 in early North American trading and bounced higher. 

GBPUSD on the hourly chart

The last hour and 40 minutes has seen the days range retraced.   In the process, the pair has now moved up to retest its 200 hour moving average at 1.41655. The high price of just printed 1.41661 and backed off a bit.  

A move above the 200 hour moving average would have traders looking toward the 100 hour moving average of 1.41813 as the next key target.   

For risk focuses sellers against the 200 hour MA, falling back below the 61.8% retracement at 1.41514 would give them some comfort that the MA did its job of stopping the run higher.  A move above, however, should lead to stops. 

Yesterday, the price chart above and below both the 100 and 200 hour moving averages on its way to the downside. The pair did close near session lows.

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