Sellers fail on the first breaks
As outlined in a post yesterday, the GBPJPY can come off new highs for the move higher but had to get below the 143.256 swing low level and an upward sloping trend line. The price did do the first but could not get below the trend line into the North American session today.
The break of the trend line was met with selling. The price fell below the 143.25 to 143.35 swing area and then below the 100 hour moving average for the 1st time since January 26. However, momentum faded and the price over the last 4 hours has been able to extend back above the swing area. The 100 hour moving average has moved up to the low of the swing area at 143.256.
Sellers had their shot on the break. They failed.
As a result, the buyers and sellers are now in more of a battle with the 100 hour moving average as support. On the topside, the rising underside of the broken trend line currently at 143.66 is resistance.
If the sellers are to take more control getting below the 100 hour moving average and stay below is a step 1. The next step would be to get back below the 38.2% retracement at 143.014. That would be the minimum if the sellers are serious about taking control at these levels.
Until then, the buyers still have the nod.
In the EURGBP today, the pair has seen volatile up and down swings. The high price today did find sellers near the 100 hour MA and topside trend line, and moved back to the downside. The last 3 days have seen the price try to move above the 100 hour moving average only to fail and move back lower. Today's high stalled right around the level where sellers lined up this time.
The next target now is the earlier session low at 0.87948 followed by a lower channel trendline near 0.87838 (and moving lower).
