Forex technical analysis: GBPUSD moves away from 100 day MA

100 day MA tested yesterday and today and finds buyers

The 100 day MA comes in at 1.2914. Yesterday is was at 1.2912. The low yesterday bottomed at 1.2912 and bounced. Today the low did breach the 1.2914 level on the way to a low of 1.2907.

However the bounces (there were two looks below the 100 day MA today) were quickly reversed (see 5- minute chart below).

The moves higher have the price now testing the 200 bar MA on the 4-hour chart at 1.29812. We hare now trying to make a break above that MA level and in the process, is trading at the highest level since August 14th. A topside trend line on the 4-hour chart cuts across at 1.12988. Key area/key test for the GBPUSD. I would not be surprised to see some stall here. The range for the day is up to 80 pips. The 22 day average range is 74 pips.

Having said that, the sellers/profit takers would likely turn to buyers on a break higher. The 1.3020 level is the 50% of the move down from the August high to the August low. That would be an upside target.

On a intraday corrective move lower, really close a move back below the high from last Tuesday at 1.29778 is step one. Below that hte 1.29617 was the 38.2% retracement level. The swing highs from yesterday stalled at 1.29654 and 1.29639. Getting below the 1.2961-65 will be eyed.

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