The GBPUSD is moving lower in sympathy with the EURUSD’s decline. The price is moving back to the broken target at the 1.5661 level. This was the 38.2% of the move down from the end of April high to the June 1 low. The price of the GBPUSD has been a safe haven this week. The price moved close to the 200 day MA yesterday (green line in the chart above). That level comes in at 1.57485. The high yesterday reached 1.56367. Close but no cigar.
Looking at the hourly chart (see chart below) the price is also moving toward a key support target against the 100 hour MA (blue line on the chart below). That level comes in at the 1.5650. The price for the GBPUSD has been above the 100 hour MA since July 13th (and above for the entire week). A move below should solicit additional selling. However be aware of the upward sloping trend line not far behind at the 1.5642 level. This trend line connects the lows from Monday, Tuesday and Wednesday of this week. Yesterday, the price broke away – moving above the Tuesday high at 1.56774. Stay below the 1.56774 and the profit takers should take control. Move back above this old high now and the bulls remain in control.
