Moves below the the 100 hour moving average

The GBPUSD has moved down for the 2nd consecutive day. The pair reached the highest level since September 3 yesterday, only to break below a upward sloping trendline and run toward the rising 100 hour moving average.   Early support buyers came in against that moving average level, but in the Asian session the moving average was broken and the price has remained below that level since that time.

The low for the day did find support buyers near the 38.2% retracement of the move up from the November low. That comes in at 1.31351. The low for the day reach 1.31313 before moving back higher.  The traders are now looking toward a topside channel trendline at 1.3186 followed by the flattening 100 hour moving average 1.31984. Sellers should lean against those levels. However a move back above the 100 hour moving average would likely trigger stops.

If resistance holds, getting below the 30.2% retracement and then the swing lows for the week between 1.3117-1.31217, and the 200 hour moving average at 1.31031 (green line in the chart above), would be high as the next key targets.

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