Now close resistance for trading
The GBPUSD has tumbled on more "dovish" chatter out of the BOE. The price fall, takes the price below the 1.2900 level, the 100 bar MA on the 4 hour chart at 1.2880, trend line support on the hourly chart connecting the post "snap election" low and the May 4th low at 1.2874 and the 50% of the move up from the post "snap election" low at the 1.28715. Close risk for traders is now the area defined by the 50% to the 100 bar MA on the 4-hour chart at 1.28715-1.28808. Shorts would want to see those levels stall any corrective move higher.
The next targets to get to and through include the 61.8% of the move higher at 1.2844 and the May low at 1.2829.
Looking at the daily chart, we still sit closer to the highs after the sharp move higher in April that saw the price move up from a low of 1.2360 to 1.2988 (close enough to the natural 1.3000 high). If sentiment changes to the concerns about slower growth/transition from Brexit more problematic/inflation under control, prices were much lower and traders remember. The 1.2768-73 area was home to the December 2016 high and was a stall area after the spike higher on April 18th (the lowest low was did extend to 1.2754). Below that and the 1.2703 swing high February 2017, the trend line at 1.2660 and the 38.2% of the move up from the March swing low comes in at 1.26514.
Sellers taking more control below the 3 levels of support (100 bar MA, trend line and 50%). Stay below and there is room to roam, BUT support levels lining up too.
