The fall below the 100/200 hour MA has seen follow through selling

The GBPUSD in trading yesterday, stalled against a pretty strong ceiling area between 1.39988 to 1.4009. The high price reached 1.40006 and found sellers by risk focused traders (risk was a move above 1.4009).

The fall below the 100/200 hour MA has seen follow through selling

The fall lower yesterday stalled near the 100/200 hour MA.

Today the price traded above and below the MA levels before deciding to move back higher toward the broken 38.2% retracement at 1.39546. However, the break back below the 100/200 hour MAs have tilted the bias lower. The Fed SLR announcement has led to more sellers.

The pair just moved below a swing area between 1.38447 and 1.38537. Intraday, if the sellers can stay below that area, that would be the best scenario for shorts. On the downside, the low for the week at 1.38083 is the next target.

Although the range for the week is relatively low at 192 pips, there have been lower ranges this year (149 pips) and last year (134 pips). Having said that the pair has still had its share of ups and downs. The ceiling level certainly was a big hold that kept the sellers in play. The pair closed last week at around 1.3918. At 1.3841 currently, the pair is lower by about 77 pips.