GBPUSD moves lower as door remains open for a hard Brexit

Technical Analysis

Author: Greg Michalowski | gbpusd

GBPUSD falls below 100 hour MA on the news

The GBPUSD has moved to new session lows on the defeat of the parliamentary vote designed to stop a hard Brexit.  The price has moved below the 100 hour MA in the process at 1.2708 and now test the 200 hour MA, trend line and 38.2% retracement at the 1.2684-88 area. Buyers are leaning against the cluster of support on the first look.

The GBPUSD is below the 100 hour MA but finds support on the first look of cluster support
The GBPUSD's fall below the 1.2727, 100 hour MA has shifted some of the bias more to the downside. However, it will take a move below the cluster of support now to give sellers the next push.  

Failure to do so, wiill just signal a normal correction into support.  While a break, will open the pair for additional selling with the 50% at 1.2660 a downside target.  

PS the EURGBP cracked higher on the news. It is making new session highs on the news and trades above the 100 hour MA, swing high area. The holding of the 200 hour MA and 50% retracement was also bullish for the pair.

EURGBP moves higher on the UK vote news

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