Forex technical analysis: GBPUSD trying to get more involved

Technical Analysis

Author: Greg Michalowski | gbpusd

EURGBP tumble keeps the pair better bid, but....

The GBPUSD is trading at new lows for the week, and looks to be making a break to the downside technically (below the 1.53825-90 area). 

Yesterday, the pair moved lower and extended below that support target defined by swing highs from earlier in October and the 38.2% of the move up from the October 13 low (see yellow area in the chart below).  Those breaks failed.  Today is a different story.

Currently, we are seeing another run through that support line and it is looking like there is some market support in the move today.  The pair is currently testing the 50% of the same move higher (from the Oct 13 low). Traders will now have the support area, as a ceiling. Stay below 1.5390, and there can be further room to run lower (PS closer resistance  will be eyed at 1.5367-74 - see 5 minute chart below).

The next targets come in at lower trend line at the 1.5339. The 200 day MA comes in at 1.53296. The price surged above this MA back last week. I would expect buyers against the MA on a test today...

One thing helping the recent fall, is some help from the EURGBP.  In the last 30 minutes or so, there has been a reversal higher.  The 0.7200 is the 50% of the days move lower today. The 100 day MA at 0.7211 is also a key level to eye. The break below that level today was the first break since August 20.

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