200 day MA and 50% retracement holds the line
The GBPUSD has found support in trading today against the 50% of the move down from the May 14 high to the June 1 low. That level comes in at 1.54915. The 200 day MA (daily chart is not shown but the 200 day MA overlay is the green horizonal line) comes in at the 1.5492. The 100 hour MA comes in at 1.5478 currently. The low for the day to 1.5486 but not spend much time below that level in trading today. Support held like a charm and we have seen a bounce off that level.
The weaker Empire manufacturing gave the pair an extra push higher but the high has stalled near the midpoint of the days range, trend line resistance on the 5 minute chart (see chart below) and the 200 bar MA on the 5 minute. So the sellers have drawn an intraday line in the sand. If the sellers want to make another push to the lows, the pair has to stay below this area.
Watch for a move below the 1.5517 to be a little clue the sellers are trying to exert more control for a move toward the all important 200 day MA level below.
