PM May to present plan to Brussels. 3 Tories resign from party

Three Tory MPs resigned from the party and anxiety about Brexit plans has the GBPUSD backtracking some of the hefty gains seen in yesterday's trading.

PM May to present plan to Brussels. 3 Tories resign from party

Technically, looking at the hourly chart above, the pair fell from a high of 1.30775 (highest high since February 4). That high took out the NY session high from yesterday's trading at 1.3072 but only by a few pips. That "break" was not all that impressive and the pair started to find some profit takers.

The fall today, took the pair close to the 38.2% of the run higher at 1.3006. The 200 day MA was not far from that level at 1.30027 today.

Those two levels were enough to stall the fall. The low reached 1.30108 and we are seeing a rebound back toward the 61.8% of the bigger move down from the January 25 high. That level is near the middle of the day's trading range. It might be a logical place to set a barometer for intraday bias. Trade above, more bullish. Stay below and intraday sellers still have some life.

Ultimately, the 200 day MA (call it the 1.3000 level) is a bigger barometer for the bulls and bears. With the price moving back above, it might seem to run against the threat of a no-deal or party turmoil, but we have to respect "the market". Many a people with "thoughts" on what should happen, have been burned by what "did" happen. Technicals help to tell that story (and define risk/bias in the process).

Nevertheless, the 1.3000 level if broken would shift the bias. I would expect stops (more selling) on a move below the 1.3000 level.