Tests yesterday's low
The GBPUSD remains the laggard. Yesterday the pair eked out a gain for the day. It was the second up day in 13 days. The problem? It was only up by 6 pips. Not exactly a race higher. Today, the pair tried to build off the higher close but failed. When the price moved below the 100 and 200 bar MA on the 5 minute chart (blue and green lines), the buyers threw in the towel and the price started to drift back lower.
The pair took out the low from last week at 1.4351 and the swing low going on way back to the week of June 6, 2010 at the 1.4345 level. The price bottomed at 1.43245 so far today.
Looking at the 5- minute chart above, the price just tested the 100 bar moving average and the low price from yesterday at the 1.4359 level. In a trending market, if the price is to reverse, the little battles must be won first. That would be to get and stay above the 100 bar MA. If that cannot be done, the sellers remain in full control. So far, the sellers remain in full control.
The EURGBP has been helping to keep the GBPUSD pressured. It has moved higher after getting close to the 100 hour MA in earlier trading. The rally has taken the pair to the highest level since the week of January 18, 2015. IN the process, the pair has also moved above the 100 week MA at the 0.7613 level.
