Looking back to last Friday, the GBPUSD rallied sharply higher on US employment day last Friday and followed that sharp gain with another sharp price increase on Monday (on Scottish election results).
The pair peaked on Tuesday after failing to extend much higher above Monday's high (momentum failed). On Wednesday, US CPI data sent the US dollar higher and the GBPUSD pair lower (to test the rising 100 hour moving average). Yesterday that 100 hour moving average was broken with more momentum.
The low yesterday reached 1.4004, but could not get below the natural 1.4000 level, nor the rising 200 hour moving average (green line).
Today's price action has been mostly to the upside, but with the 100 hour moving average in the way, traders are taking some profits. Watch the 1.40793 level as a close barometer intraday. That level was the initial swing low after the CPI on Wednesday. Yesterday sellers leaned against that level in the Asian session as well. A move below could see more probing to the downside ahead of the weekend.
Conversely holding 1.40793, could lead to a springboard move above the 100 hour moving average and the old floor area between 1.41021 and 1.41064.