Brexit anxiety keeps traders on edge
As the Brexit clock looks down to the October 15 the EU summit, the price action in the GBPUSD remains choppy.
The pair moved higher and away from its 100 hour moving average into the European/London morning session, but tumbled back lower and through the moving average on the way to a test of its 200 hour moving average (green line). The low stalled near a swing low from October 2 and October 6 and swing highs from October 7 (see red numbered circles).
The rebound back to the upside as seen sellers near the 100 hour moving average (give or take) at 1.29328.
Traders will be hoping for a break of either the 100 or 200 hour moving averages with momentum and hopefully less chop. Having said that, the fundamental dynamics seem to suggest that absent a deal, or no deal, the price chop will continue.
Nevertheless pay attention to the moving averages, and hope for the best on a break.