GBP/USD continues to hug the 200-day MA for a second day running
UK traders are back today after a long weekend, and will come back to their screens seeing that they have not missed much in all honesty. On Friday, it was all about the 200-day MA (blue line) and today, well… it’s still all about the 200-day MA @ 1.3544.
The key level is still helping to hold up sterling despite the dollar’s advance over the past two days. And the rest of the market will surely be eager for price to move towards either side of the 200-day MA in order to determine the next move in the pair. Can UK traders help with that?
Let’s wait and see later. In terms of levels, a break of the 200-day MA opens up a move towards the 50.0 retracement level @ 1.3429 but not before bids sitting at 1.3500 and further support down at 1.3458.
As for upside, the first key resistance level will be the 3 January high @ 1.3613. But in between, expect offers around the 100-hour MA @ 1.3571 and at 1.3600 as well.