The 100 and 200 day MA on the GBPUSD are converged at the 1.5825. The low is 1.58247. The combination is just too good to pass up for traders looking to book profit form shorts. Risk is defined and limited with a break leading to stops.

Earlier today, the price fell below the 100 week and 200 week MA also close to each other. The 100 week MA is at 1.5892. The 200 week MA is at 1.5878. Yesterday, the low fell between those two key levels at the 1.5878. The 38.2% of the 2012 trading range comes in at 1.58919. This area will be key resistance on any corrective moves higher.

The trend move to the downside today has traveled 107 pips so far from the high to the low. The last trend leg or wave to the downside, has the 38.2% retracement at the 1.5856 level to the 1.5866 level. This will be the area where traders will look for sellers. If the trend has good trader support at the lower levels, they should come in at this area.