The GBPUSD has given up its gains in continued up and down trading. The pair reached the high after better data today (largest service sector jump in 24 years). The high price extended above the 1.4200 level to a high of 1.4203. That move also took the price back above its 100 hour moving average at 1.41777.
However the last two hours has seen the price move sharply lower and back below both the 100 and 200 hour moving averages (200 moving average at 1.4166). Stronger US data, higher yields have contributed to the dollars rebound to the detriment of the GBP.
The low for the day at 1.41428 has now been broken as has the swing low from last Friday's trade at 1.41357.
The next target comes at a swing area between 1.4110 and 1.4115. Yesterday the low price stalled within that area and bounced higher. A move below that level would have traders targeting the lower extremes since May 18 at 1.40986 and 1.40909. It would also take the price outside of the up and down trading area that has mostly been contained between 1.4110 and 1.4233 since May 17. A break and staying below that "red box" would increase the bearish bias.