Sellers against 200 hour moving average earlier turned buyers into sellers
The GBPUSD yesterday stalled against a swing area between 1.3924 and 1.3939. The pair also tested a downward sloping trendline at the area. The price came off but stayed above the near converged 100 and 200 hour moving averages (blue and green lines).
In the Asian session, those moving averages were broken and although the price action was choppy during most of the UK morning session, the pair did find sellers against the 200 hour moving average (green line). The inability to extend back above those moving averages, kept the sellers more control. The price has moved lower (and moved to new lows for the day).
The low price has tested the 50% midpoint of the range since April 12 at 1.38383 (and a swing area between 1.38346 and 1.38414). There has been some modest profit-taking. Watch the 1.3577 to 1.38616 for intraday clues. Recall from last week, the lows from Monday Tuesday and Wednesday stalled in that area.
Should the 50% level be broken with more momentum, the low from yesterday, 61.8% retracement and swing area between 1.3798 - 1.3808, would be targeted. Both on Friday and yesterday, the lows stalled in that area and bounced. It remains a key downside target. A move below would have traders looking toward the 100 day moving average at 1.37647.
For now the sellers are in control below 1.38616 and then the 200/100 hour MAs above those levels. Break below the 50% area, and sellers can push further with 1.3800 area the next key target area