Runs lower from the 200 hour MA
The GBPUSD is trading to a new session low as the New York session lows toward the end of day. The low just reached 1.3880. That was just short of the top of a swing area between 1.38616 and 1.38765 (the swing area goes back to February 10 – see red circles in the chart below).
Earlier today the pair tested its 200 hour moving average at 1.40117. However, Powell's comments did not help the interest rate market or the stock market, and the dollar started to rebound across the board. Getting below the 100 hour moving average and an upward sloping trendline for the major targets to get to and through. That shifted the bias back firmly in the direction of the sellers/bears. With the swing area now approached (and the low from Tuesday trade), the market has a decision to make. Stay above and we could see a further rebound. Move below and traders will start to look toward the February lows.