The GBPUSD made new day lows in the last hour of trading but only by a couple pips (see 5 minute chart below. The move was not met with increased selling but more dip buying. Nevertheless, the price is below the 100 and 200 bar MA on the 5 minute charts (blue and green lines in the chart below). The closing level from yesterday comes in at the 1.5901 level. The price is trading just above this level. If the pair is to recover, it needs to get back above the two moving averages at 1.5923 and 1.5943 respectively (for the 200 and 100 bar MAs).
The GBPUSD remains below the 200 (green line) and 100 bar MAs.
Longer term, the price on the spike higher earlier today, saw the price for the GBPUSD move above the 1.6000 -12 level. This is the 50% of the move up from the 2013 low to the 2014 high. The 200 week MA at 1.6013 this week was also broken but only briefly in the move higher today. This may have helped contribute to the bearishness from a technical perspective in the GBPUSD today. Admittedly, the price of the pair has been trading above and below these key levels over the last few weeks. At some point, there should be a more trend like move away. The bears remain in control for the pair.
The GBPUSD has been able to stay (for the most part) below the 1.6000 area.
Another influence to the GBPs relative weakness, is the action in the crosses. The EURGBP moved above the 100 day MA (blue line in the chart below) and looks certain to close above that MA for the first time since March 2014 (see chart below). That pair is testing the high closing level over the last 4 months at the 0.8030 level. A move above this area could see a further move toward the 50% of the move down from the March high to the October low at the 0.8082 level. Key test for the pair. IF the level holds, there could be a temporary respite for the GBPUSD.
EURGBP tests the high closing level over the last 4 months at 0.8030.
Also the GBPJPY has pushed lower today/this week. This is what the weekly chart in that pair looks like as the pair has been trending lower over the last few weeks. The price today reached a low at 168.00. The 38.2% of the move up from the June 2013 low comes in at 167.85 and the low from the week of March 16, 2014 comes in at 167.75. Although this is a support level that held, watch for the pair to find sellers on rallies toward the 169.50 in trading going forward.
The GBPJPY tested the 38.2% and recent lows (low today reached 168.00
