Chops higher in less active trading today
The GBPUSD has a low to high trading range today of only 53 pips. The 22-day average is 129 pips (around a month of trading). So the price activity is less active then recent history. It also means there is room to roam. Be aware.
What is holding up the price action today is the 100/200 hour MAs. The choppy price action today saw the price extend back above the 200 hour MA at 1.35958. The initial high in the Asian session (see hourly chart above) stalled at the 50% retracement. Traders took the price back below the 200 hour MA but the price has snapped back higher.
The highs has reached up to the 100 hour MA (with some modest breaks of a few pips) and trades just below that MA currently. If the price can extend above – and stay above – the buyers should look to push higher with the 61.8% retracement at 1.36365 as the next upside target. Stay below (or fail again) and a run back below the 200 hour MA will be eyed.