GBPUSD cracks below trend line and runs lower

Technical Analysis

Author: Greg Michalowski | gbpusd

Trend line break at 1.1840 opens the downside

Trend line break at 1.1840 opens the downside
The GBPUSD created a nice trend line on the hourly chart at 1.1840 today (see earlier post outlining the level here). The 1.1840 level is also home to the 2016 low price.  When the price broke below that level last week, the pair traded to the lowest level since 1985. 

For now, the trend line and 2016 low break turned the buyers turned into sellers.  The price of the GBPUSD scooted lower. The low has now reached 1.1737 (100 pips can go quickly these days). The next target comes in at the 50% of the move up from the low on Monday. That 50% level comes in at 1.17085.  Below that, and traders will be eyeing the 100 hour MA (blue line) at 1.1674.

On the topside intraday watch the 1.1788 to 1.1799 area. That was high levels from yesterday's trading. Stay below keeps the selllers in firm control. 

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