...and contributed to the sharp move back down
The GBPUSD pair saw the price move above the high prices over the last two weeks at 1.3887 and 1.38912. The pair also moved above the 1.3900 level on it's way to a high at 1.39123. That high, however, ran into its 100 day moving average at 1.39124.
The high today also corresponded with the theme for the day of higher stocks, lower dollar.
However, when stocks started to head lower, after the key technical level was hit, the longs got offside, and that has exasperated the move lower in the GBPUSD pair. The buyers were forced to turn to sellers.
The pair is trading at US session lows now at 1.3845. Should there be more selling, traders would start to look toward a cluster of moving average support defined by the 100 hour moving average at 1.3828, the 200 hour moving average at 1.3825, and the 200 day moving average at the same 1.3825 level. That area should be a solid support with stops on a break below.
