The GBPUSD moved to test it's 50% retracement at the 1.31185 ahead of the December retail sales report and found some profit taking sellers. Nevertheless, the prices just 11 pips off the high price as the weaker than expected retail sales were reported (-0.6% versus +0.5% estimate). The surprise decline sent the pair tumbling lower with the fall not stopping until reaching its 100 hour moving average at 1.3025. The low reached 1.30257.
Since bottoming, the price has move back up to retest its 200 hour moving average at 1.30564. With the pair currently trading at 1.3049, traders are battling between the two moving averages (see yellow area in the chart above).
For the week, the low price reached 1.29537 on Tuesday. The high price was today at 1.31185. The ranges is 164 pips. The midpoint of that range is 1.3035. The current prices just above that midpoint level.
Looking at the daily chart, the price tried to move above its topside trend line today, but the price is back down testing a broken trend line (see chart below). On the downside once the 1.30116 level. That was the high price going back to October. In December leading up to the election, the price extended above that level and raced higher. Earlier the this month, the price stalled against the level but dipped below on Monday and Tuesday this week.