The GBPUSD has had a volatile up and down and back up and back down session. The price is still lower on the day and really trades below its 100 hour moving average at 1.19965.
Looking at the hourly chart recall from yesterday near the end of day, the price move back above its 100 hour moving average (blue line) and closed above that level. In the Asian session the buying continued with the price extending up toward the 38.2% retracement of the move down from the June 27 high. That level comes in at 1.20495. The Asian session high reached up to 1.2055 before rotating back to the downside.
After falling back below the 100 hour moving average, buyers gave up and selling extended the pair all the way down to 1.19183.
Since then – and through the jobs report – the price has chopped higher with the pair extending to a pre-jobs report high of 1.2029. The low extended to 1.19505 after the jobs report before spiking back up to 1.20163 and then back down to 1.19708.
Needless to say, the up and down price action is whipping traders around as traders adjust to what’s next.
The 100 hour moving average will continue to be a barometer in the short-term. If the buyers can get above that level and stay above, a run back toward the 38.2% retracement and the falling 200 hour moving average at 1.20687 would be targeted.
Conversely, stay below and fall below 1.1975 and traders may look to extend lower.
It’s Friday on a jobs report day. The price action has seen buyers and sellers. That may keep traders cautious going into the weekend and may also promote more ups and downs as well.