Now resistance?
The GBPUSD made a break to the downside and in the process is moving away from the 100 hour MA (blue line in the chart below). That MA has been trying to hold support today (there was one earlier break that failed). WIth the break, traders will/should use the level as a risk defining level if they really mean to be more bearish.
The next target comes in at at 1.3296 which is the 38.2% of the move up from the AUgust 29th low. The 1.3250 area is a confluence area where the 50% retracement, 200 hour MA and the low from Sept 2 all come together. That is a target if the momentum starts to build (it would be a stretch for the day as it implies a 125 pip trading range).
The EURGBP is helping as it trades toward the next trend line target at 0.8502. The 50% of the move down from the August high comes in at 0.8528.
