GBPUSD retraces the earlier gains
The GBPUSD has moved to a London session low at 1.3620. That is getting close to the Asian session low at 1.36156. The low from yesterday reached 1.36108. Those are the next downside targets that need to be broken.
The 38.2% retracement of the move up from the Monday low comes in at 1.36044 and is another target. The 100 and 200 hour moving averages are near converged at the 1.3593 area. Get below those levels increase the bearish bias.
Recall that the high price from yesterday reached 1.3700. That was a couple pips off the high from last week at 1.3702. The "double top" gave the sellers the AOK to push lower.
The run higher earlier today moved toward those highs but could only reach 1.3679 - still some 21 pips from the high. Buyers randomly turned the pair around (indicative of traders not too sure of directional bias).
Overall, the price action is choppy suggesting uncertainty from traders. The run higher may have gotten its inspiration from not being able to get below the low from yesterday in the Asian session. The high today seemed to just run out of upside steam.
The move back down over the last few hours is congruent with some USD strength into the NY session. It will take a move below the low from yesterday/today and ultimately the 100 and 200 hour MA to tilt the technicals more negative and get out of the chop.
