Forex technical analysis: GBPUSD moves back into the "Red Box", and look what happened

Technical Analysis

Author: Greg Michalowski | gbpusd

Lots of people exit at the same time or one big seller?  Who knows, but the level was important....

The price plunges 100 pips in 12 seconds. Wow.  What triggered it? Technically we moved back into the Red Box.  Have been talking about the Red Box all day (all week/ last week).  Everyone can see it....

Now admittedly, 100 pips in 12 seconds is a bit much. So there may have been an extra 0 or so on an order below the level, or there may have just been a lot of people disappointed that the break above the 15 day ceiling at 1.2988-90 failed or there may have been some fat finger on a price order.  Nevertheless,  for those that did get in on the "crash", it was a quick run lower.   

What now?

Well the fall took the price all the way through the 100 and 200 hour MAs at 1.2926-28. The low reached 1.2886. We currently trade back above the MA levels (at 1.2941).   The 50% of the move lower comes in at 1.29669.  I like to use that as a proxy for bullish above and bearish below (like the apex of a see-saw).  So far, the correction has stalled around the 38.2% of the move at 1.29479.  

On the downside, a move back below the 100 and 200 hour MAs will be eyed. Get below and more bearish.