Up and down and up day
The GBPUSD is back in the black for the day in what has been an up, and down, and back up trading day.
The close was at 1.3933. The price is at 1.3937 currently.
“GBPUSD moving into the next cluster of downside targets”). That area was defined by the 200 hour MA, 200 bar MA on the 4-hour and the 50% midpoint of the move up from the March 8th low (at 1.38865).
“Do buyers come in after the tumble and stall the fall in this area (at least for a profit taking bounce)? So far, the dollar buying has been pretty relentless. The 50% is a final “line in the sand” to stay above. A move below, and it could solicit even more selling. If it holds, the buyers will still need to see the price get, and stay above, the 1.39026 level to feel comfortable, and then the 1.39124.”
The low reached 1.38873 – just above that last level and the price did move back above the 1.39026 (trend line and 200 hour MA) and the broken 38.2% (see chart above) at 1.39124.
The ups and downs is approaching the 100 hour MA and the 200 bar MA on the 4-hour chart at 1.39449 area.
Does the price stall there?
I would expect it would have a tough time getting above that level. However, with the action today, I also can’t rule out one final run to the topside trend line either.
So look for sellers against 1.39449, but keep risk low.