Price dips back below the 100 hour MA
The GBPUSD is back down testing its 200 hour moving average after a run above the 100 hour MA failed. The 100 hour moving average is currently at 1.41556. Getting above that level is now needed to give the buyers more confidence. So far the 200 hour moving average at 1.41346 is holding (on the first dip).
A move below the 200 hour moving average – and staying below – would have traders looking toward the 50% of the move up from the May 13 low at 1.41191. Recall from yesterday, the price it did dipped below that moving average on the hourly chart and five consecutive borders, but could not sustain momentum (most of the price action yesterday was between the 100 hour moving average above and the 200 hour moving average below) .
On a move below the 200 hour moving average, traders will target the swing area between 1.4102 and 1.4112 (call the low 1.4100). A move below the 1.4100-02 low would open the door for further declines.
PS the 1.4075-1.40793 would be another downside target – see green numbered circles.
