Dipping back below the 100 and 200 hour moving averages
The GBPUSD has moved to a new session low after the better-than-expected Trump goods orders. The low just reached 1.31195. That surpassed the late Asian session low price of 1.31248 (but just barely).
In the process, the price has moved back below its 200 and 100 hour moving averages at 1.31359 and 1.3131 respectively.
The next target would have traders eyeing the 1.3113-14 area. Looking at yesterday’s trading action the price initially spiked to that area in the Asian session. Then in the New York session after breaking above, the corrective move down found support buyers against that level (see green numbered circles). A move below that level opens up the door for further downside momentum
Close risk is at the 200 hour moving average at 1.31359. Traders would also love to see the price remain below its closer 100 hour moving average 1.31296. That would be the ideal resistance now.
Sellers are making the early play. Traders will now be watching the resistance/support level from yesterday’s trade for further bearish clues.