Could not get out of the 3 plus month range
The GBPUSD fell sharply on Friday and in the process the 100 day MA at 1.3868. The resignation of Rudd today helped to keep the bias more to the downside.
The pair moved to new lows and traded at the lowest level since March 1st. The problem? That low today stalled at the March 1 low. The price remains in the 3 plus month trading range. Not helping as well, is the low also stalled ahead of a lower trend line at 1.3698.
So although the GBPUSD fell below the 100 day MA on Friday and ran, the race lower hit a wall. That can be a problem.
Drilling to the 4-hour chart, the price has moved up to test the topside trend line at 1.3781 and stalled. The March 8th swiing low came in at 1.37785. That area is a topside resistance area that if broken, would take more of the bearishness out of the market.
It won't be the end of the world for sellers - a move back above the 100 day MA would be more of a bummer for longer term sellers looking for more downside - but with the double bottom and trend lines and other levels taken back, it could lead to more corrective momentum.
Right now though, the sellers are still winning.
