1.3100 level stalls the fall
The GBPUSD is just touched a new session low a pip or two below the 1.3100 level. That was good enough for a new session low, but the pair is not exactly running. The range for the day is 59 pips. That is not reallly all that great on a relative basis of late.
The pair tried to extend higher after the more dovish Fed yesterday, but runs above the 100 hour MA late yesterday, and again on a number of hourly bars today, did not lead to much momentum. The underside of a broken trend line seemed to have stopped the rally at the highs today.
What next?
The sellers seem to be trying to take more control at the moment.
- The rally off the 200 day MA yesterday was ok, but not gangbusters.
- The 100 hour MA breaks were met with limited price momentum.
- The price has retraced back to the lows.
A break below the 1.3100 should solicit more selling with the rising 200 hour MA at 1.3062 and the 200 day MA (which did a good job of holding support yesterday) at 1.30514 levels to get below.
