GBP/USD has been bearish since last summer, falling from around 1.42 to 1.30 where it bounced from there by the middle of March. Today this forex pair moved higher with the flow of funds favoring European currencies after the comments from Russian officials earlier today which improved the sentiment. We heard commments that Russia was beginning to withdraw troops around Kyiv which coupled with the hopes for a peace agreement has increased risk flows today

The GBP/USD move to the upside has been limited, however, as risk focus traders leaned against its 100 hour moving average at 1.31609. The high price reached 1.31591 and backed off again. We decided to open a sell forex signal below that moving average, so we hope that the bearish trend resumes again.

GBP/USD Daily Chart – The 200 SMA Has Turned Into Resistance

The retrace is complete on the H1 chart

Looking at the hourly chart, the pair moved lower in the London morning session. Consumer credit rose at a larger than expected rate to 1.876 billion versus 0.843 billion. This is up sharply from 0.143 billion in January and may suggest that consumers are tapping out of savings as costs increase.

The low price for the day fell short of the last swing low going back to March 16 at 1.30421 (the low price reached 1.30499). The move back to the upside was able to extend back above the swing low from March 22 at 1.3118, and above the earlier session high just below that level 1.31148.

The price of the GBP/USD has been able to stay above those levels since the break higher. Intraday, that level will be eyed as close support. If the price can stay above, there remains the hope that the 100 hour MA at 1.31609 and the higher 200 hour MA at 1.31715 can be broken. But despite that, the price still needs to get above the MA levels, and so far sellers are successful in leaning against that moving average.

GBP/USD Live Chart