CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

GBPUSD tests 200 hour MA/50% retracement

12/27/2017, 10:15:12 AMTrading Strategies
GBPUSD tests 200 hour MA/50% retracement

The GBPUSD is up testing the 200 hour MA and the 50% retracement at the 1.3381 area. This is nothing new as the ups and downs over the last 5 days has seen the price move above and below the MAs.  Nevertheless, the convergence of the 200 hour MA and 50% tends to create a stall point on a test.  We will see as liquidity conditions are light

On the downside, earlier in the day, the pair's price stalled against a lower trend line and bounced (see green circled numbers). That gave the buyers a reason to take the price higher and the sellers a reason to cover shorts. That line will be eyed on any moves lower, with a break being more negative/bearish.


ON the topside, a move above  the 1.3381 area has another trend line not too far away at 1.3389. The 61.8% of the move down from the Dec 15 high comes in at 1.33996 (call it 1.3400).  The 1.3417-19 area was swing highs from last week and will be a key swing level on a test.  


For the time being, the 50% and 200 hour MA should give sellers a reason to lighten up in the holiday trading.