Price could not extend below the “Main Floor”

The GBPUSD is trading to new session lows and in the process has moved down to test the “main floor” going back to November 23. That area currently comes between 1.3283 and 1.32912. 

The price needed to extend below that “main floor”.  It couldn’t. Buyers leaned against the level and the sellers gave up. 

The last few hours has seen the price move back higher, and in the current bar the price has moved back above the 200 and 100 hour moving averages (green and blue lines), that are mired near the middle of the range (that is predominantly between 1.3283 and 1.3405).  

The move back above the moving averages, gives a little more tilt to the upside, and at the least gives the intraday buyers against support from earlier in the day, a level to move their trade stop up to.  Stay above is more bullish.  

The pair also moved above a broken trend line in the process which currently cuts across around 1.3331.  

On the topside, the next target area comes in at 1.33795 to 1.33842.  Above that is the interim ceiling (see blue numbered circles) between 1.3397 and 1.34054. Yesterday – and into the Asian session today – the price tried to stay above that ceiling only to fail.

Overall, the pair remains in the meat of the range since November 23. Traders are still working on deciding which way to break next.

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