Breaks below 100 hour MA
The GBPUSD is trading at fresh session lows. There is increasingly little confidence in the PM (calls for resignation) and the internal Brexit process.
Technically, the pair tried to rally in the Asian session on but the rally stalled near the April 12 swing high at 1.3132 after getting above another piece in the area and 1.3119 – 22. The pair then steppe down below the 1.3100 level, the low from yesterday and high froom May 2 at 1.30797-81 area (see red numbered circles), and the 100 hour moving average of 1.3077.
The pair has now corrected 38.2% of the move higher from the April 24 low (at 1.3057) and finding some profit takers. There is a stall at least (or so it seems).
Risk for shorts now comes in at the 100 hour moving average and low from yesterday at the 1.3077-81 area. I would expect sellers to lean against that area on more a corrective move higher this morning. .
On more downside momentum through the 38.2%, the 1.30428 high from May 3 and the 50% retracement of the move from April 24 (at 1.30203) are targets.
Buyers had their chance earlies but failed/stallled. The sellers below the 100 hour MA are now feeling the control more as the pair moves back into the meat of last week’s trading before the sharp move higher.