Takes back rise off the hike
The GBPUSD moved higher. The GBPUSD fell back down.
The BOE rose by 0.25 bps as per expectations and the initial reaction was to the upside. The price reached the 100 and 200 hour MA at 1.31179 and 1.3128 respectively. The high reached 1.3123. The price also tested a topside trend line at 1.3120. That cluster of resistance stalled the rally and the price started to reverse back lower.
We just moved to new session lows as Carney's presser continues and the selling has intensified as traders bailed out of the earlier purchases. Carney did say that "policy needs to walk not run". Perhaps that is a disappointment. Also realistically, Brexit could cause all sorts of havoc and it is more likely that there is chances for cut(s) on failures.
Technically, the pair is down retesting the lows from October and November 2017 at 1.3026 to 1.3041 (see daily chart below). The low just dipped to 1.30268, and as I type, is just moving below that level.
The price did move to a lower low in July (last month - see yellow area on the hourly chart above) but that break failed.
Does the area stall the fall?
It's like catching a falling knife - and as mentioned we just broke below.
Other targets?
The 1.3009 was a swing low on July 18. The low from July 20 came in at 1.2994. The low for all of July reached 1.29569 (on July 19). Those are targets on more downside..
The probe lower continues.
Risk for shorts?
The 1.30546 (61.8% retracement) is now close risk for shorts looking for more downside. The 1.3070-79 is another area to get back above (swing lows from July 24 and July 27) if a bottom is found and a reversal begins.
