Trades near session highs
The GBPUSD dipped below a lower trend line on the daily chart yesterday, but momentum on the break could not be sustained. The price rebounded higher.
Today the price moved lower as inflation came in lower than expected but rebounded off the low. The low price also stalled ahead of a lower trend line at 1.2973. The low for the day reached 1.2983. It will take a move below that trend line to weaken the technical picture on the daily chart.
Drilling to the hourly chart below, the price action today fell in the London session and in the process fell back below the 1.30122 level that was the low from last week and near an intraday high yesterday.
However, over the last few hours the price has rebounded higher and is currently trading above and below the 100 hour MA. It will take more momentum above the 100 hour MA to solicit more upside potential with the 1.30522 level (38.2%) as the next target. Above that, the falling 200 hour MA at 1.30701 will be targeted. On the downside, a move back below the 1.30122 should tilt the intraday back to the downside.
For now, the market seems to be reluctant to make too much of a play one way or the other (hence the down and up trading). The range for the week is only 90 pips. That is not a lot for this pair. The market is trying to figure which way the price action will trend next.