This pair can squeeze higher and then go lower (and visa versa)
The GBPUSD has moved back below its 200 hour MA at 1.31371 (after holding it earlier in the day on a test). That is a bearish development. The low reached the 50% midpiont of the move down from last week's high at 1.31221.
The price is currently testing that 200 hour MA now.
The 1.3144-566 is a swing area to eye as well today. There have been a number of swing levels near those levels since March 20 (it is kinda of a dividing line for bulls/bears). Move above it would dull some of the recent selling pressure.
For this pair, you have to be ready for squeezes and for runs lower as well. There is just too much Brexit stuff that could tilt the bias one way of the other. That requires digging in, picking spots and going for it (and excepting failures too).
Yesterday, the 200 bar MA on the 5 minute chart was broken to the upside and that started a sharp rally (see chart below).
Today, you can argue the 200 bar MA at 1.31497 (green line in the chart below) has led to another move (this time to the downside). Watch that MA for clues. Follow the wiggles and waggles of the market (see post from yesterday).
