…and moves back below the 100/200 hour MA now.
After the GBPUSD traded to the highest level since April 2018 – taking out the high from May at 1.4233 and the February 2021 high at 1.4240 in the process – the GBPUSD has reversed lower from the peak at 1.42493. Making a new high for the year by only 9 pips was a disappointment. The buyers turned to sellers.
The price is currently breaking below the 100 and 200 hour MAs (blue and green lines) at 1.41748 and 1.41665 respectively and trades down to 1.41557. The 100 hour MA at 1.41748 is now close risk. Stay below and the sellers hold the edge. A move above would likely lead to some corrective upside probing after the 95 pips drop from the high. The average trading range for the GBPUSD over the last month is about 90 pips.
On the downside, the 61.8% of the move higher from last week’s low come in at 1.41514 and would be the next downside target to get to and through. Move below that level and the low from Friday at 1.41357 would be eyed.
