The GBPUSD moved lower earlier today after the expected employment data. The decline saw the price move back below the 38.2% retracement of the move down from the mid-October high at 1.31422, but find support buyers near the converged 100 and 200 hour moving averages near 1.3119.
The price bounced back above the 38.2% retracement level, and after retesting it and holding support, the buyers reentered pushing price higher The high price moved back toward the 38.2%. The high reached 1.31834 – just 2 pips shy of the retracement level. The current price trades at 1.31745.
What next?
Holding below the target resistance between 1.31855 and 1.31913 keeps the sellers in play/control. It would take a move above those levels to increase the bullish bias.
Support and resistance is doing their jobs. Traders are awaiting the next shove.
