The pair found sellers against a tough topside resistance target.
In the Asian session, the GBPUSD moved up to test a key cluster of resistance. In the session wrap yesterday, I wrote:
GBPUSD: The GBPUSD moved above it 38.2% retracement of the move down from February 24 cycle high (highest level going back to April 2018). That retracement level came in at 1.39546. The pair is trading at its highs at 1.39902 at the moment, and looks toward resistance between 1.39988 and 1.4009 (which is the 50% midpoint of the move down from the Feb 24 high) That area it is home to a number of swing areas from March 1, March 3, and March 4. Look for sellers with stops above 1.4009.
Today, the price high reached 1.4004 and found willing sellers against the 1.4009 level (risk to be defined/risk could be limited against a cluster of resistance).
After the price move back below the broken 38.2% retracement 1.39546, the selling continued until reaching the 200 hour MA and 100 hour MA (blue and green lines). The last four hours have seen a break of those MA levels and the pair is currently trading at new session lows (the low just reached 1.38736.
The next target would come near the rising trendline and swing area around 1.3856. Having said that, the range for the day 131 pips is good distance above the 22 day average of 105 pips. So although the sellers are in firm control below the 100 and 200 hour moving averages, the sliding like a little bit more tougher as the weekend approaches.
Nevertheless, the correction seen this week stalled where it should've stalled and stay below the 50% retracement of the recent move lower from the February 24 high. The price below the 100 and 200 hour moving averages gives the sellers the advantage is far as control in the short/intermediate term. Watch the moving averages for bias clues going forward. Stay below and the trend remains the sellers friend.
