Trending lower on day
The GBPUSD has fallen back down to the underside of the broken trend line at the 1.2868. The low reached 1.2869. The pair has been trending on the back of weaker UK data today, but traders are taking a breather against the level (see daily chart below).
Drilling to the hourly chart (see chart below), the pair was pushed below trend line and the 100 hour MA (blue line in the chart below), earlier in the day and that got the ball rolling more to the downside. The 200 hour MA was also broken (green line). The price had not traded belwo the 200 hour MA since June 26th. The snap correction off the employment report stalled well below the 200 hour MA. Sellers remain in control below that MA level (now at 1.2930).
Closer resistance might now be eyed at the Wednesday low at 1.2892.
On the downside, in addition to the trend line from the daily chart, at 1.2868, the 38.2% of the move up from the June low comes in at 1.28605. That level is also the swing high from June 27. So the area from 1.2960-68 is a key support target to get through for sellers. Currently we are seeing the first test finding some buyers (with stops likely on a break).
So watching for sellers near 1.2892 (give up to 1.2900), but understand that the 1.2860-68 needs to be broken below
