The GBPUSD move higher into the European session. However as the US data came out today, and it was better than expected, yields started to move higher, the dollar started to trade higher as well, and the technicals in the GBPUSD gave the sellers the go-ahead to push lower (higher USD) .
That move lower took the price of the GBPUSD below a swing level at 1.31787 (minor support) and have traders looking toward a cluster moving averages as outlined in the kickstart video from earlier today. That cluster included the
- 100 bar moving out on the four hour chart at 1.3146.
- 100 hour moving average at 1.31325
- 200 hour moving average 1.31241
That area is also near the middle of the range since around August 20. It kinda makes sense as yields moved back higher and perhaps the expectations of a 50 basis point cu starts to fade away a bit.
This article was written by Greg Michalowski at www.forexlive.com.