December 06, 2024 at 03:28AM
The GBPUSD moved higher yesterday helped by the USD selling but once the price stretched to the 50% midpoint of the November trading range, the buyers started to shift to sellers and the price wandered lower into the close. That level comes in at 1.27669. The high price going back to mid-November was just above that level at 1.2769.
That area will be a key barometer on the topside through the US jobs report in the US session tomorrow. Get above and the pair would next target the
200 bar MA on the 4-hour chart at 1.27933, and then the.
KEY 200 day is in play at 1.28291.
A move above the 200 day MA would be a big step for the buyers and the bullish bias.
Having said that, the price action in the APAC session is wandering to the downside and moving modestly away from the 50% retracement. If that momentum can continue, we could see the pair target the swing area between 1.27125 to 1.2722. Below that, the 100 hour MA will be targeted at 1.26905. Get below both those levels, opens the door for a test of the 200 hour MA at 1.2664 and the 100 bar MA on the 4-hour at 1.2651.
Overall, the price action is higher this week, but with the key jobs report ahead, the 50% seems to be a level worth stalling at for traders. That makes sense.
However, for traders that level is still key in helping to define the next moves for the pair. If the price can extend above, we likely keep the upside momentum going, but if it holds and some of the levels are breached on the downside, the sellers may look to return back to the downside.
This article was written by Greg Michalowski at www.forexlive.com.
