100 hour MA, Retracement area and swing levels stalling the fall so far
The GBPUSD closed lower for the first time in 10 days on Friday. The decline was modest (8 or so pips) after reaching to the highest level since March 9 earlier in the day, but it broke the up streak nevertheless.
The pair is down again today after breaking below a lower trend line and continued down toward its 100 hour moving average currently at 1.3023. The price also moved into the correction zone defined by the 38.2% – 50% of the last trend move higher (from the low on July 28). That area comes between 1.30034 and 1.3042. A swing area was also tested. The low for the day reached between those areas at 1.3011 before finding some modest buying. The pair has moved back up toward the broken 38.2% retracement level at 1.30426, and found sellers.
The downside probing has continue into the new week, but is running into the 1st major support cluster albeit still a modest point from the high (although the move is still a modest decline from the high). The sellers have taken some control back along the way to the point we have reached today, but if the pair is to go lower, it still needs to breach the aforementioned support levels. Failure to do that and the move is a simple correction of a bigger trend move higher. Get and stay below the 100 hour moving average is a key need for the sellers.
