Bottom fishers try to exert a change in direction
The GBPUSD traded most of the day below the lows from the pre-FOMC and the low from Tuesday's trading (at 1.52755 and 1.5282). The 38.2% retracement at 1.5282 also was a ceiling. That neutral zone (yellow area) was breached in NY trading and a move to the 100 hour MA (blue line) ensued. Like yesterday, sellers leaned against the area and the price moved back down. Where to? The neutral zone (yellow area) of course.
So bottom fishers seem to be trying to make a play to a change in direction for the pair. The good news is the risk is defined and the correction off the day highs held the support. The bad news is that the trend on the chart is down AND the 100 hour MA is getting in the way.
As the result, the buyers (against 1.5282) can have their say and the sellers (against the 100 hour MA at 1.5312 currently) can have their say. Who is right will be dependent on the next break and run.
A new sandbox to play has been found. Let's see how long the attention can be maintained.
