GBPUSD trades to new lows on EU's Sefcovic's comments

Technical Analysis

Author: Greg Michalowski | gbpusd

Brexit will never go away

Some comments from EUs Sefcovic has sent the GBPUSD lower (CLICK HERE) and to new lows for the day.  The range is now up to 57 pips - was 43 pips at the start of the NY session.  So the market is not exactly going wild, but it may be a start.

Brexit will never go away
Technically, the bias has shifted more in the favor of the sellers. The price has moved back below the 100 hour MA at 1.4163 and also dipped below the 200 hour MA at 1.41476.  The low price reached  1.4133 so far.  The Asian session low traded modestly below the 200 hour MA but not by much before pushing higher and extending above the 100 hour MA in the late Asian trading.  Getting back above the 200 hour MA is now close risk. 

The high price today did trade above the 61.8% of the trading range last week at 1.41855, but stalled ahead of the high from yesterday at 1.41901 and the week at 1.4200.  Last Thursday, the high reached 1.4203 but quickly faded back to the downside.  Ultimately, if the price is going higher, getting and staying above 1.4200 is needed. 

With the pair trading in an up and down range, there can be a lot of targets at the swing low levels (1.41277, 1.4115, 1.4110*, around 1.4100, 1.4090 and the low from last week at 1.40822). There is also a trend line cutting across at 1.41344 currently. That is being tested as I type. 

Move back above the 100 hour MA and 200 hour MA, would put the kabosh on the selling and spoil the bias shift to the sellers.   The shorts would be disappointed and there should be some upside covering.  

For now, the sellers are making the play on the back of some bearish comments and weakening technicals.  

PS the EURGBP is rising sharply higher and tests resistance target at the 0.8626 to 0.86295 area.

EURGBP moves up to  swing resistance

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