The GBPUSD has broken below its 100 hour moving average at 1.25987. Earlier today, the price fell to that moving average but found support BUYERS against the level. The subsequent move to the upside reached up to 1.26243 before rotating back to the downside over the last hour or two of trading. The price last traded below the 100 hour moving average on Wednesday of last week when the moving average was near 1.2500, but that break was short-lived, and the price trended to the upside reaching a high of 1.2668 yesterday.
Stay below the 100 hour moving average keeps the sellers more control. The 38.2% retracement of the move up from last week's low comes in at 1.25789. That is the next downside target. A break below that level and traders will start to look toward the 50% midpoint and the rising at 200 hour moving average near 1.2550. That is also New York swing lows from last Thursday and Friday (1.2747 and 1.2754 respectively).
Recall from yesterday's video, the high price yesterday tested a key swing area high between 1.25987 and 1.26653. The high price reached just above that level at 1.2668 before rotating back to the downside. Buyers turned to sellers near key target level (see red numbered circles on the chart below). Today the price is also moving below the low of that swing area at 1.25987.
