Range extended to 66 pips in the process
The GBPUSD traded to the high from Friday in early Asian trading today and then started to wander lower.
- Remember, last week the price fell below the 100 day MA on Tuesday (and closed below).
- On Wednesday, that MA was tested and held (bearish).
- Friday was a reversal day, with the price staying below the 1.2300 level. Other than the high being near a big round number, the corrective high really did not have much significance. What is more significant, is the rally was kinda...tame (dead cat bounce)
- The price remains below the 100 hour MA at 1.22979.
- That MA is catching up to the new trend line (and moving lower).
Are there closer resistance levels?
Drilling to the 5 minute chart, the last correction stalled at the 200 bar MA (green line). That is down to 1.2269 and moving lower.
Even closer risk is the 100 bar MA. The MA was also tested and held on the last leg lower today. That comes in at 1.2257 and moving lower.
As I type we are making new lows with the lows from last week targeted (at 1.2223 and 1.2213. Sellers in control. A break of those levels will look toward the 1.2200 level and below that the 1.2082-1.2113 area will be eyed.