Forex technical trading: GBPUSD back into the meat of the trading range. Tests key level.

Last week (and extended into trading today), cable had a “look-see” below what was a consolidation low area defined by the 1.5053 level.

GBPUSD is back into the blue box (consolidation area) after taking a quick trip below last week. WIll it stay in the box and move toward the other extreme now?

Today, the idea that the break lower last week was a new trend, was thrown out the window as traders pushed above the 1.5053 level and now the 100 hour MA (blue line).

Currently, the price is back down testing the 100 hour MA and this should be a good battle between the buyers looking for more upside (up to the top of the range perhaps?) and the sellers still looking for dollar strength.

Looking at the same  hourly chart – but only more recent – the pair is currently testing the 100 hour MA and a number of other lows going back to January 9th (see blue circles) at the 1.5074 area.  This level should attract buying if the buyers today, want to exert their bullish influence and send a technical message.  Risk may be down to the 1..5053-56 area (bottom of blue box), but this current area is also a key intermediate level to gauge buying interest.   Can this area hold? If it does, we should see a move toward the 200 hour MA going forward (green line at the 1.5120).

GBPUSD is back above the 100 hour MA and other lows. Key technical level NOW