Move higher corrected around 38.2%. Price lower than the 200 hour moving average. Looking to test the 100 hour moving average.
The GBPUSD hit a low on Monday against a downtrend line at 1.20729, and corrected to highs and Tuesday and Wednesday. These peaks reached the 38.2% retracement of the drop from the April 30 peak at 1.22905, but could not provide more momentum than this corrective level of regular vanilla. That done, the move above is a simple simple vanilla correction (for now at least).
Today we find that the price is struggling to reach and stay above the 200 hour moving average at 1.22455. Staying under keeps the sellers more in control.
There is work to be done below the 100-hour moving average at 1.2200. Keeping buyers’ hopes is that the price fell below this moving average earlier in the session and failed. Thus, although the inclination is lower, it depends on obtaining and keeping below the moving average of 100 hours. Returning above the 200 hour moving average with momentum cancels the bearish tilt.