Below 100 day MA and lower trend line
Traders in the GBPUSD are looking to keep the sellers in control after an earlier in the day rise failed.
Looking at the hourly chart above, the price today moved above a topside trend line that has done a good job of stalling rallies (see blue numbered circles). That break failed and the pair was kicked lower on some earlier Brexit headlines.
The tumble lower took the price below the 100 day MA at 1.31609 and a lower trend line at 1.3148. The sellers are taking more control. The risk is a move back above those levels today. As long as the price stays below those levels, the sellers will feel more in control. A move above and the bias switches around.
ON the downside, the pair did move below the 100 hour MA at 1.31224 and could not stay below. So there is work to do. Get back below that MA level – the break was the first since September 5th – and the sellers would feel more comfortable. That is what traders will look for today. The 200 hour MA at 1.30606 (and rising) is a lower target on a break.