Requests extension to June 30th which could be a difficult date for EU
GBPUSD has moved to fresh lows after the news that PM May sent a letter to EU Tusk to extend Article 50 to June 30th . She also expects a 3rd meaningful vote at some point along that timeline. Will the EU accept the request that is beyond the European elections near the end of May? They have indicated that they would not be willing to go that far.
Technically, the price moved below its 100 hour MA early in the Asian session and stayed below (blue line). That turned the the buyers above the MA, to sellers under the MA.
The new low, has now taken the price below lows seen over the last 5 trading days at the 1.3200 area. There was a break below the 1.3200 level on Monday with a run to 1.3183, but that run was quickly reversed. Other lows came in at 1.3201, 1.3205, 1.3202. The low just reached 1.3200 (and now breaking below as I type).
Also in play on more weakness, is the 200 hour MA at 1.31905 (and rising - green line). That MA is being tested as I type. The price moved back above the 200 hour MA on March 13th.
A test of the 200 hour MA should solicit some buyers, but it may not take much to push the price below especially if the 1.3200-05 area can now hold resistance (find seller near it). A move below the 200 hour MA would look to test the 1.3083 low and then the 50% retracement at 1.31695.
Key MA being tested now with close resistance now at 1.3200-05.
