Trades in a downward channel
The GBPUSD continues to chop lower in the early week trading. The price opened below the 100 hour MA (at 1.24848) and fell below a trend line (and apart from a little peek above stayed below) and tested than broke below the 200 hour MA (green line currently at 1.24273).
The price waffled above and below the 200 hour MA over the last 5 hours of trading, and in the process respected a lower channel trend line and swing area at 1.2406-139. There is other support targets on the hourly chart at the 61.8% at 1.23977 and a swing area at 1.2385-88.
The price is lower but trades in an area where there are a lot of road blocks.
Intraday,selllers are more in control, but a move above the 200 hour MA and 50% retracement at 1.24445 (with more momentum) should worry some of the shorts and lead to more upside probing.
On the downside, the lower channel trend line and swing areas (down to 1.23851) are targets to get to and through below. Falling below, gets the pair through most of the downside roadblocks in the way.
