Below trend line on the daily. Below Neutral area on the 4-hour chart
The GBPUSD last week, moved to a new high for the year and in the process traded to new highs going back to Brexit 2016. That break failed and the price moved down for 5 days. In the process a trend line was busted (now at 1.4032). The price remains below that trend line. The 100 day MA at 1.37568 is a target.
Yesterday, the price consolidtated/moved a bit higher, but the move was limited. Looking at the 4-hour chart below, the pair moved to a high of 1.3995. Not only was that high just below the natural 1.4000 level but the price tested a wide Neutral Zone area in the 1.2965-95 area. Going back to the end of February, that area defines a bullish above and bearish below area (see red circles in the 4-hour chart below).
The "Neutral area" is wide at 30 pips, but if the sellers are to take this pair lower, that area needs to continue to be resistance (it is risk for shorts). If it can hold, the 100 day MA seems to be a doable target going forward. PS the 1.3887 swing low from March 16th would be an interim target.
The pair is not racing lower but it is lower. Looking at the 5-minute chart below, the corrective high in the London session stalled around the 1.3965 area. The price has stayed below the 100 bar MA for most of the day. That keeps the sellers in control.
