GBPUSD recovers to MA area after UK vote results, but backs off again.

Technical Analysis

Author: Greg Michalowski | gbpusd

Boris Johnson does better than expected

The GBPUSD has recovered after the votes for UK Tory leadership shows Boris Johnson with a commanding lead (hope he unites and leads to a deal?).  The price has now moved through the 200 hour MA and up to the 100 hour MA (blue and green lines at 1.26949 and 1.27056 respectively).  The price has backed down and trades back below the lower 200 hour MA.  

Boris Johnson does better than expected
What next?
Well there is a little something technically for the bulls and the bears.

For the bears:
  • The high yesterday could not get above the June 7 high
  • Fell below the 1.2727 level
  • Fell below the 100 hour MA at 1.27056, and successfully tested that level today
  • Below the 200 hour MA (traded above and below that MA level.
For buyers:
  • Held the 50% retracement and bounced
  • Above the 38.2% retracement at 1.26844
I guess the sellers have a little more of the advantage for traders today being below the MAs. It will take a move back above the 100 hour MA to make the buyers more comfortable.

A move below the 50% at 1.26603, would give sellers more confidence and increase the anxiety for the longs/bulls. 
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