GBPUSD Technicals: The GBPUSD fell to the 100 day MA goal and located prepared patrons

The GBPUSD fell steadily via the US session on stronger US information, setting new weekly lows and the bottom since Aug 11. The slide reached the 100-day MA at 1.34078, with a session low at 1.3405, earlier than patrons staged a modest rebound towards 1.3425. That bounce isn’t a surprise right into a key occasion, and tomorrow we’ve got the important thing Fed Chair Powell speech at Jackson Gap. The 100-day MA usually acts as a impartial pivot the place either side reset into the headline threat, and let the information, dictate the following transfer (larger or decrease).

Tactically, the 100-day MA (1.34078) is the speedy barometer. Sustained buying and selling under it might tilt the bias decrease (extra hawkish Fed that sends yields larger); holding above retains dip patrons within the recreation (transfer dovish or much less hawkish speech).

The broader tone this week has leaned bearish (larger USD). That corresponded with the market taking among the easing bias out of the market (it’s now 75% for a lower in September). Technically, the 100-hour MA gave means on Monday, the 200-hour MA (1.35059) broke on Tuesday and was retested Wednesday, and in the present day’s failure close to the 50% retracement of the drop from the July 1 excessive at 1.3463 invited the run to the 100-day take a look at.

Into the Fed chair speech/ occasion window, sellers retain the sting under 1.3463; reclaiming 1.3463 would ease stress, whereas an in depth again above 1.35059 (200-hour MA) would undermine the bearish case.

Key ranges

• Assist/pivot: 1.34078 (100-day MA), 1.3386 (38.% retracement) 1.33607 (low of swing space)

• Resistance: 1.3463 (50% of the July-to-Aug decline), 1.34957 to 1.35059 (100 and 200 hour MAs)

• Stronger resistance / bias flip: 1.35059 (200-hour MA)

This text was written by Emma Wang at investinglive.com.