Still lower on the day.
The GBPUSD has been trading up and down today. Taking a breather from the push through the 100 day MA this week? It seems that way. The high for the week was on Monday at 1.2478. The low today extended to 1.2258. The 100 day MA was broken on Tuesday. That MA was tested yesterday, found sellers, and moved lower.
The stall today is being helped by a support area.
Looking at the daily chart, the 1.2252 to 1.2259 area was lows from Jan 18, 19, and 20th. That is the next target for the pair on the downside. We need to get below it to give sellers more confidence that there is more. The market is not ready yet (or so it seems). Be aware.
Drilling to the price action today, trading has not really followed any technical pattern. The price has moved above and below it's 100 and 200 bar MAs (blue and green lines). With the support target at the 1.2252-59, you can see the support from buyers against the level. You can also see that the 38.2% of the move down from yesterday's midday high at 1.2307 and that level has stalled the upside so far. So buyers and sellers are digging in and battling it out. In between sits those MAs.
At some point there will be a winner declared. With the sellers taking the price below the 100 day MA this week, the burden of proof is on the buyers to show they can take back some control.
How do they do that?
Get above the 100/200 bar MA, and then the 38.2% high for the day. That would be the first baby steps for a recovery.
Absent that, and the sellers are still in control and we could expect a move below the support target at some point.
