The GBPUSD has cracked below the 200 hour MA for the second time today and like the first, the price has raced lower on the break.
The first break, however, did see a bounce back rally which saw the price move back above the moving average and retest the 50% midpoint of the range since the March 18 high at 1.38353 and just below the 100 hour moving average of 1.3841 area. The London session high reached 1.38371 before moving back down, and breaking back below the 200 hour moving average.
The break this time, has seen the pair moved to a new session low. The price is also entered into a key swing area between 1.37415 and 1.37582. Although the swatch of swing lows and highs is fairly wide, there have been a number of swing lows and swing highs between that area going back to March 23. On April 1, the price last tested the area, before basing against the area one last time and racing higher. There should be some cause for pause in the area now. What kind of bounce we get is debatable, but I do expect some profit-taking/dip buying in the area with stops on a break below.
UPDATE: As I type, the pair is making a new low around the 1.3750 level. Testing for the dip buyers.
PS the EURGBP is also racing higher which is having a negative impact on the GBPUSD at the moment. The pair is testing the swing highs going back to March 23 to March 25 between 0.86406 and 0.86449.