Like the EURUSD, the price in the GBPUSD has fallen below the 100 hour MA (at 1.56427 currently – resistance now) but instead of targeting the 50% retracement of the move higher, it is testing the 38.2% of the move up from last weeks low. That level comes in at 1.56303. A move below will look toward the 200 hour MA at 1.5616 currently.

The PMI Serice in the UK came out weaker today at 51.3 vs 52.9 expected (lower than last month at 53.3), but unlike the the German PMI, was still above the 50 level. The market price bottomed just before the release this morning, but rebounded after the event. The correction off that low, corrected toward the 50% level and started the move back lower (see 5 minute chart below).

The topside trend line off that chart comes in at 1.5644. The 38.2% and 100 bar MA is at the 1.5653 area. These too are topside resistance for the pair in the trade today. Stay below and the price continues the drift lower.