February 9, 2023

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GBPUSD trades back up toward 200 hour MA as pair chops up and down

1 min read

The “market” is unsure

The GBPUSD is backup testing the 200 hour moving average at 1.38977. Earlier today, the GBPUSD price tested that moving average on two separate occasions and found sellers.  

The "market" is unsure

Technically if the moving average is able to be broken, that it is a more positive/bullish bias.  Stay below and the bias remains little bit more tilted toward the downside.

In the favor of the buyers is today, the price broke below a lower trendline on two separate occasions and each time the price rebounded. The lows also stalled ahead of the swing low from yesterday at 1.38577.  Sellers had their shot. Sellers failed to push through. 

Having said that, yesterday, the buyers took the price up to – and through – a topside trend line only to fail on it’s break. So buyers had their shot and buyers failed. 

So what we do know is overall, the pair remains in a relatively narrow trading range this week with a low at 1.3857 and a high at 1.39286 (only 71 pips).  We are now more than halfway through the week. I would expect at some point, the range will be extended (it is still a toss up). 

Getting above the 200 hour moving average would tilt the break idea to the upside.  Stay below and the tilt for the break and extension would lead in the downward direction.

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