The GBPUSD could not stay above the 1.5843-50 retracement level (see prior post – days midpoint) and the selling ensued. The price has moved below trend line support (1.5819), the 100 hour MA (1.5812) and 200 hour MA (1.5805). These levels will now act as resistance on corrrections. Stay below, and the downside can be further explored. Move above and the sellers below the 1.5843 level may be scratching their heads. The 61.8% of the weeks trading range is the next target.
Looking at the daily chart, the 1.5783 is shaping up as a key support target. The level corresponds today with the 50% of the move down from the 2012 high and the trend line support (4 points on the trend line).