Moves down below 100/200 hour MAs and tests 50% retracement
The GBPUSD trends lower after the break above a key swing area between 1.3700 to 1.37088 failed and the buyers turned to sellers.
The swing area was broken on Wednesday too, but only for a part of an hourly bar before reversing back to the downside. So when the pair moved above and stayed above the level yesterday, the buyers were making a play on the break.
However, in the late Asian/early European session, that area was broken. A test of the 100 hour MA found buyers and the price rebounded back toward the swing area, but sellers lined up and the price moved back lower.
The 100 and 200 hour MAs (blue and green lines) at 1.3652 and 1.3643 were each broken, but the 50% midpoint of the week's trading range at 1.36319 is finding some support buying.
If the price can move back above the 100 hour moving average and 38.2% retracement at 1.36587, the dip buyers will have some comfort and we could see more upside probing of the trend move lower today. If the price cannot take back those levels, the sellers remain in control.
For the week, the low was on Monday at 1.35188. The high price was yesterday at 1.37451. That high was the highest level going back to May 1, 2018.