The pair is working on the 7th straight hour lower
The GBPUSD initially move higher continuing the trend from yesterday, but stalled ahead of the high from Wednesday’s trade at 1.32665. The high price reached 1.32539 and started its 7 bar move to the downside on the hourly chart below. The last hourly bar close at 1.3108.
That run lower has taken the price back below the 100 hour moving average at 1.3167 and the 50% retracement of the week’s trading range at 1.31651. The pair more recently slashed through its 200 hour moving average at 1.31189 without much of a hesitation.
For the week, after Monday’s non-trending day, the price trended to the upside on Tuesday, trended to the downside on Wednesday, trended back up to the upside on Thursday and is now trending to the downside on Friday.
Technically stay below the 200 hour moving average would keep the sellers firmly in control. Given the sharp up and down movements this week, the lows for the week are certainly within the sites. The New York session low the yesterday came in at 1.3079. The low on Monday was at 1.30723. Finally the low price from yesterday’s trade came in at 1.30637. Can we expect the buyers against those levels? I would certainly expected as risk can be defined and limited as we head into the weekend.
Looking at the daily chart, the January and March swing highs from earlier this year between 1.3199 and 1.32116 were broken on 4 consecutive days (the wouldn’t of expected that). One-day closed above the area. Another day closed within the area. The other 2 days on Wednesday and again today seem to looking to close below.