The 1.2774-1.2811 has a bunch of stuff there
Looking at the daily chart of the GBPUSD, the 1.2774-1.2811 area is a key support area. There are a number of swing lows/highs in the area (see red numbered circles) and the 38.2% of the 2017 trading range comes in in the area (at 1.27778). The lows yesterday and today extended to 1.2779 and 1.2773 respectively. The price currently trades above and below 1.2800.
Drillling to the hourly chart, the pair did move back above the 1.2811 level today, but stalled ahead of the 100 hour MA (blue line in the chart below). On Tuesday, the price fell below the 100 hour MA and the 100 day MA around the same area. The 6 days of up and down around the 100 day MA was snapped and the pairs momentum to the downside increased.
With the correction holding the 100 hour MA, the sellers are back in control. Traders may look to use the 1.1811 level now as resistance (close risk). However, understand that the 1.2774 level needs to be broken to see more downside going forward. The first look held and that should keep the sellers on alert for support buyers reentering on another test. For now, sellers more in control.
