Moves further away from its 200 day moving average
Yesterday, the GBPUSD moved below its 200 day moving average for the first time since September 2020. The price also closed below that level in trading yesterday (first time since July 2020).
Today the high price reached 1.36888, just below its 200 day MA at 1.36934. Sellers leaned against the MA level. The price stayed below. The bears remained in control.
The price stepped lower and the decline has accelerated over the last 5 trading hours (see hourly chart below). The low has reached 1.3571. That is just above the February low of 1.35608. The pair is down for the fourth consecutive day.
What now?
Looking at the 5 minute chart, the price rallies today did see the price extend above its 100 and 200 bar moving averages, but those attempts were thwarted by the overhead 200 day moving average (at 1.36931). The last peak in the London morning session reached 1.36761, before rotating back to the downside and below the moving average levels (blue and green lines on the chart below). The price has trended lower since that time.
The 38.2-50% of the move down today comes in at 1.3611 to 1.36236. That area along with the falling 100 and 200 bar MAs (and swing area between 1.3653 to 1.36612) are resistance levels that would need to be broken and remain broken if the buyers are to take back more control.
