Forex technical analysis: GBPUSD consolidates between levels
MAs above. Broken trend line below.
The GBPUSD broke above a topside trend line on the hourly chart yesterday. That is more bullish if the price can stay above that line. That MA is now at 1.3160 (and moving lower).
The GBPUSD stalled near the 200 hour MA (green line) yesterday. That is more bearish if the price can stay below that line. That MA is at 1.32138 currently
The 200 bar MA on the 4-hour chart is at 1.32271. Staying below that is more bearish too.
The current price is trading at 1.3209 - just below the 200 hour MA at 1.32138.
So the pair is above support, but below resistance but trading more toward the upper extreme on the back of the USD weakness.
Like always, traders will be looking for a break followed by a momentum run to confirm the break. Right now, should there be a break above the 200 bar MA levels (hourly and 4-hour), the 38.2% comes in at 1.32664. That would be the next minimum target if buyers are to take more control from what is a more bearish trend (since the Sept 20 high).
Right now, that is still in the distance as the dueling 200 bar MAs give sellers something to lean against, and those traders are trying to keep the lid on the pair.