The GBPUSD has moved up to test the 100 hour MA at 1.21361 currently and found sellers. The high for the day reached 1.21354 and backed off a bit. The current price is trading at 1.2128. Him
The move to the upside today has been able to take out resistance between 1.20866 and 1.20989 (see red circles). That area is now risk for bulls/buyers in the short term.
On the topside, getting above the 100 hour moving average is the next step for the buyers. Above that, and the 200 hour moving average 1.21548. A downward sloping trendline also cuts across between the moving averages.
If the price is extend above both the moving averages – and stay above – the buyers would increase their bias control.
Recall on Friday, the low price after the stronger US jobs report, fell into a swing area between 1.2002 and 1.20192 and bounced (see blue circles). The natural support at 1.2000 also helped to put a limit to the downside. That gave buyers some hope which has been increased with the positive tilt today.
Nevertheless, the price move higher today has seen ups and downs which suggests a battle with the sellers. It is not a one-way street but it does have a bullish tilt.
Helping is that US yields continue the move lower with the 10 year down -7 bps now. The 2 year down -13 basis points. Lower yields are weakening the USD and also giving the stocks a boost. The Nasdaq is up 160 points or 1.26% now.