Sellers keep the pressure on the pair
The GBPUSD is trading to a new low and in the process has moved below the 200 hour MA (at 1.29548). The run to the downside was started with the move below the 1.3000 level. This was outlined in the earlier post (CLICK HERE):
Now with the price lower, the Sellers are making a play (albeit in choppy trading). Getting below the swing area on the hourly chart (and 1.3000 level) followed by the 100 and 200 hour MAs (at 1.29816 and 1.2953) would kickstart more selling (or provide support for dip buyers). That is the roadmap going forward for the pair.
With the price moving below 200 hour MA (green line), the pair has been “kickstarted” more to the downside. The 200 hour MA is now close risk.
The next targets will have traders looking toward the
- 38.2% of the move up from the September 23 low at 1.29260.
- A trend line cuts across at 1.2923 (and moving higher).
- A move below that level, will have traders looking toward the low from Friday at 1.2919,
- The Thursday low at 1.28904 and
- The 50% of the move higher at 1.28778.
Sellers have the ball and they are running. How far can they now go?