Below an old trend line now
The GBPUSD – like the EURUSD – has extended lower after the better US retail sales. The Brexit quagmire continues to trouble flows into the GBP. Technicals are also not that supportive – although the pair did have a short covering rally on Wednesday and into Thursday. That rally is being retraced.
Looking at the hourly chart above, the short covering rally stalled at the 200 hour MA not once but twice (and got close a third time – see green line in the chart above at 1.26708 currently). That same moving average stalled the rally on Monday too. Bearish. Yesterday, the 100 hour MA (blue line) stalled the fall. The pair was ping-ponging between the two moving averages. A battle was on (see post HERE)
Today is a different story.
The price has ended up falling below the 100 hour MA (blue line – bearish). There was a retest (with a few pips above) but the sellers are prevailing. The low just reached, has taken the price below an old trend line at 1.25486. That is a close risk level now.
Another risk, level is a topside trend line on the 5 minute chart at 1.2568 area (see chart below). Stay below it and the sellers are still in control.
ON the downside, the pair has support target at 1.25058. That was the low from December 10. The low for the month (just before the short covering rally) reached 1.24748 twice. Key double bottom target on more weakness (see hourly chart at the top of the post).