The dips below the 100 day MA of late has not done much
The GBPUSD dip below its 100 day moving average currently at 1.28754 for the 1st time since September 25.
Back in September there were four attempts to break below not only the 100 day MA but the 200 hour MA as well. Each saw momentum slow. There were no closes below the moving average line at that time. Ultimately the price rebounded higher in October, with the high price reaching 1.3176 on October 21.
The last 8 trading days has seen the price move lower in 6 of the 8 days including today (Friday was a correction higher day). Today's look below the rising 100 day moving average was a bearish play, but that move failed. It will take a move below the level now to tilt the bias more to the downside. On a break, the next target would come in at 1.28118. An upward sloping trendline comes in at 1.2790 (trendline starting in May and June). The 200 day moving average (green line in the chart above) comes in at 1.2703.
Drilling to the hourly chart below, last week, the price tried to rebound back above its 100 hour moving average (blue line on Monday Tuesday and Wednesday - see red shaded areas in the chart below). Each of those attempts failed. On Thursday, the pair found sellers not only against its 100 hour moving average, but also its 200 hour moving average (blue and green lines). That gave sellers the "go ahead" to push lower.
Today's price action has seen a sharp fall down and a sharp rebound higher. However, the price has remained below Friday's closing level keeping the sellers more control. The price is also below a downward sloping trendline currently at 1.2950. Stay below the trendline keeps the sellers more control.
