GBPUSD remains below its 100/200 MA hours this week
GBPUSD traded higher and briefly broke the 100-hour moving average of 1.33036 after non-farm payrolls were lower than expected. However, after looking at the details, the dollar’s sell off reversed and we saw a return to pre-release levels.
The GBPUSD traded higher and lower for most of the trading week. The swing highs, however, remained below the higher 200 hour moving average (green line) currently at 1.33216. Ultimately, if the buyers want to gain more control, going beyond the 100 hour moving average at 1.3303 AND the 200 hour moving average at 1.33216 is needed. In the absence of this and the salespeople are more in control.
On the downside, ahead of the jobs report, price fell below its lowest since Wednesday’s trade at 1.32607, but momentum could not be sustained (low at 1.32537) . This makes sense given the risk of the jobs report.
A move below 1.32607 – then the day’s low – would increase the bearish bias from a technical standpoint and traders looking towards Tuesday’s trade low peak at 1.31929 (and possibly be 1.3200 before this level) as the next major target drawback.