Moves away from 50% retracement
The GBPUSD has been trading above and below the 50% of the move down from the July 2015 high to the April 2015 low at the 1.58777 level over the last few days.
Today, the price fell below this level and stayed below on the correction (see 5 minute chart below) Saying below the level gave sellers more confidence and the price fell. T
The last leg down has corrected in the NY session after the weaker Chicago Nat Index. However, the 50% of the move down has held the correction so far. If it is able to stay below level, the sellers will remain in control intraday.
Looking at the hourly chart, the 100 hour MA and the 50% comes in at 1.57978. The 100 hour MA comes in at 1.5802. The low today came in at 1.5804.
What the three charts are showing is the sellers like the idea today that the move below the 50% level on the daily chart is more bearish and could be signalling a high may be in place. The 5 minute chart is showing trend like charactaristics. The corrections have held 50% of the two legs lower. That is indicative of sellers. What the hourly chart is showing is the market needs to see a good number from existing home sales. If it comes the 100 hour MA and 50% on that chart has the potential to be broken (good chance) and that should open the door for further downside potential. Much depends on the data.
