Low for the day at 1.2914
The GBPUSD fell earlier in the day to a target area at 1.2916. That was the 50% of the move up from the January low (targeted from the post yesterday). The price bottomed and corrected higher.
In the post from earlier today, I commented that:
We just made a new session high (see hourly chart). In the process, the price is looking to test the key day MAs. The 100 day MA (is at 1.29578 today. The 200 day MA is at 1.2963. After the break yesterday, that 200 day MA held corrections. The area will be key for the near term bias. If the sellers are able to keep a lid on the pair (low risk sellers against stops above the 200 day MA), they remain in control.
Looking the hourly chart below, the run higher did go and re-test the 100 and 200 day MA and stalled (see overlay yellow area on that chart). The sellers remained in control. Sellers leaning have seen the price move from 1.2962 to a low in the current bar at 1.29214.
What now?
Well the low for the day is still below at 1.2914 (remember that is the home to the 50% (at 1.2916). As a result it may be tough nut to crack, but needs to be broken for more downside.
Working in the shorts favor is that those day MAs did hold.
So the battle is on.
Drilling to the 5 minute, closer risk can be eyed at the 100 and 200 bar MAs at 1.2937-42. Stay below is more bearish. Move above, muddies the water and could see a retest of the more important 100 and 200 day MAs
