...and price is back below the 200 hour MA
Last week in the GBPUSD, the story was an up, down, up, down from Tuesday to Friday (Monday did nothing). Not only was the pattern very evident, the ranges to go with the ups and downs were pretty significant. The market price trended one-day in one direction and trended the next day in the other direction. It was crazy.
With Friday being a down day, today is supposed to be an up day and indeed the price is higher. However, the range is much more contained. Whereas low to high trading ranges were 170 or 180 pips last week each day, the range today in the GBPUSD is only 72 pips.
Moreover, the pair has not kept its upside momentum going. The price recently moved back below its 200 hour moving average after stalling near a modest swing area at 1.31496. The pair also stayed well below of its 50% recent retracement at 1.3155 and 100 hour moving average at 1.31622.
All of which points to a break in the recent story lines for the pair. Sellers are making a play to stay in control and break the pattern of the big ups and downs..
If the price action can now stay below the 200 hour moving average, that would give the sellers comfort and should lead to more pressure to the downside. The lows for the day came in at 1.30766 (at the open and later in the London morning session). That was just above the swing low from Monday's trade at 1.30723. Below that and traders will be eyeing the low from last week at 1.30571 along with the lower trend line that connected the lows for the week at 1.3055.
