The GBPUSD experienced a decline today amid increased dollar purchases in European currencies . This shift drove the price of the GBPUSD below the 100-hour moving average and the 100-day moving average (currently at 1.2032), ultimately reaching the 200-hour moving average at 1.20087. Today’s low price halted just above the 200-hour moving average at 1.20093. Buyers capitalized on this level, pushing the price upward once again.
The upward movement propelled the price back above the 100-day moving average of 1.20320 and towards a retest of the ascending 100-hour moving average, now at 1.20826. The high price peaked at 1.20835, slightly above the moving average level, before dipping to 1.2066.
So, what’s next?
With the 200-hour moving average providing support below and the 100-hour moving average presenting resistance above, traders will be monitoring for the next decisive move in either direction. A breakthrough above the 100-hour moving average could lead to further upward exploration, as more sellers convert to buyers following the unsuccessful attempt below the 100-day moving average. Conversely, if the price holds at the current level and drops back below the 100-day moving average, this could serve as the technical break needed to drive the price towards – and through – the 200-hour moving average.
Yields have been coming off their lows, and stocks have moved off of their lows as well. The NASDAQ index is now down only around nine points or -0.08% at 11421.25. Meanwhile, the S&P index which tested the closing level from 2022 at 3839.85 at the session lows is now trading at 3890.10. That is still down -29.35 points or -0.76%, but well off the lows (down -81.06 point).