The GBPUSD has moved down toward the Friday close after rallying on the better than expected PMI in the London morning session and testing topside trendline resistance (see chart above) .
The price is now moving toward the trendline support target at the 1.5983 level. A target below that would be the 1.59769 level which is the 38.2% of the move up from the March 28th low (see chart above). Below that the 100 hour MA and the 50% of the same move comes in at the 1.5951 level. All are possible targets today should the downside momentum continue.
On the topside now, the 1.6012-23 are topside resistance levels now. The 200 bar MA and the 100 bar MA on the 5 minute chart (see below), has been causing a price reaction on breaks (see green circles in the chart below). Stay below these levels today at 1.6012 and 1.6023, and the bears remain in control.
A longer term look at the daily chart shows the price moving back toward the Feb high at 1.5990 and the March 27th high at the 1.5999 level. These highs were broken on Friday and should have led to further upside momentum. If the price should be able to move back below this area, the buyers should become disappointed as the price break failed to ignite additional upside momentum. Bottom trendline support comes in at the 1.5895 area.
