Stalls at the old floor...
The GBPUSD pushed above the 200 hour MA for the first time since mid-December and that was a big thing. The pair was building off a foundation and moving higher (see prior post).
As outlined in the prior post, the next target was at 1.4351-61 which corresponded with the lows and corrective highs from Jan 12, Jan 14 and Jan 15 (see chart above). That level could not be breached and we have seen a rotation lower. In fact the price is back below the 200 hour MA. That is bearish, but it is Friday afternoon on a weekend where traders in NY are anxious about weather and getting rations for the blizzard. So liquidity conditions may be limited.
Nevertheless, those traders who sold the resistance above have great trade location and come next week if the one break above the 200 hour MA gong back to December 15 fails, that would be a disappointment for the buyers from below.
