**GBP/USD Retests 100/200 Hour Moving Averages: Key Levels for Both Buyers and Sellers**
*Adapted and expanded from an original article by Adam Button, InvestingLive.com.*
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### Overview
The sterling-dollar pair (GBP/USD) remains at the forefront of forex traders’ attention, particularly as it encounters pivotal technical regions that could set the trajectory for the days ahead. The currency pair has recently revisited a crucial convergence of the 100 and 200-hour moving averages (MA), elevating these levels as battle lines between buyers and sellers. As the Bank of England’s stance continues to evolve and US economic data injects volatility into dollar pairs, the market is watching closely for clues about the next directional move in GBP/USD.
This article will delve into the current technical picture for GBP/USD, examine the significance of the 100 and 200-hour MAs, assess fundamental drivers, and identify possible scenarios and levels to watch for intraday and swing trading.
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### Recent Price Action and Technical Context
Over the past week, GBP/USD has been trading with a bearish bias, aligning with a strengthening US dollar and persistent uncertainty over the UK economic outlook. In recent sessions, however, the currency has bounced modestly from its recent lows, leading to a retest of the 100 and 200-hour moving averages, which now sit in close proximity.
**Key recent developments:**
– GBP/USD retreated after a failed push above 1.2750, falling to a low near 1.2590 before staging a mild rebound.
– The pullback corresponded with hawkish signals from the Federal Reserve and receding bets on a Bank of England rate hike.
– The pair rebounded off session lows and has now found resistance near the convergence of the 100-hour MA (approx. 1.2650) and the 200-hour MA (approx. 1.2660).
– Short-term momentum remains fragile as traders await clearer fundamental signals and confirmation of a sustained move above or below these moving averages.
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### The Significance of the 100 and 200-Hour Moving Averages
In technical analysis, moving averages are among the most widely-tracked indicators for identifying trends and dynamic support or resistance. Shorter-term traders often prioritize the 100-hour and 200-hour MAs as key reference points for trend bias.
**Why these moving averages matter now:**
– **Dynamic Resistance and Support:** When price is beneath both the 100-hour and 200-hour MAs, the path of least resistance is typically lower. A move above both suggests upside momentum and the potential for buyers to seize control.
– **Trend Validation:** Consistently trading above these averages signals a short-term bullish bias, while remaining below them highlights the risk of continued downside.
– **Algorithmic Relevance:** Many systematic trading programs and algorithms use these averages as inputs for execution and analysis, amplifying their market impact when approached or breached.
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### Current Technical Landscape
#### Price positioning
– **Current Price:** As of the latest trading session, GBP/USD is probing the 100-hour and 200-hour moving averages, finding robust resistance just below 1.2660.
– **Short-term Resistance:** Sellers are defending these levels, as recent attempts to break above the averages have failed to gain traction.
– **Short-term Support:** Modest buying interest has emerged near 1.2620–1.2630, with additional demand at the recent swing low near 1.2590.
#### Chart structure
On the hourly charts:
– The 100-hour MA is flattening near 1.2650.
– The 200-hour MA is almost confluent, also around 1.2660, creating a technical barrier.
– The pair has been unable to close above this zone on multiple occasions, underscoring its importance.
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### Implications for Buyers and Sellers
The market is finely balanced between buyers attempting a recovery and sellers defending
Read more on GBP/USD trading.