The GBPUSD has followed the EURUSD lead to the downside (actually it is leading the decline today as the EURGBP is rising today – whoops) , falling below support targets (200 hour MA, trend line, 50% of July range, 61.8% of July range – see hourly chart below) in a steady trend move to the downside. The price also continues to stay below 100 bar MA on the 5 minute chart (blue line in the chart above) BUT is testing trend line support on that chart. This may tempt shorts to take some profits at current levels – with stops below.
On the hourly chart, the low from July 16th comes in at 1.5516. The 61.8% of the move up from the July 12 low to the July 19th high comes in at 1.55235. This area should be a level that tests the sellers at these levels. Stay below and the sellers remain firmly in control. Move above and some further correction may be expected.
Ultimately, corrections toward the declining 100 bar MA (blue line in the 5 minute chart above)) in on the 5 minute chart – along with the trend line from that chart – will help to detemine bearish or bullish bias. Those levels come in at 1.5537-43 currently and moving lower.
