Watch the 1.24717 to 1.2484 as a key bias barometer now.
The GBPUSD traded right up to the 200 day moving average at 1.24468 yesterday and stalled.
You never know what a stall like that test might lead to, but sellers against the level who put stops against the 200 day moving average, were rewarded with a sharp fall to the downside today. The low has reached down to 1.2434. That is a move of 212 pips to from the high to the low.
Along way, a upward sloping trend line was broken at around 1.2575. The 100 hour moving average was tested and then broken (blue line in the chart above at 1.25117 currently).
The next key break was through a swing area at 1.24717 up to 1.2484 (see red numbered circles in the chart above) was the next key target broken.
The current hourly bar corrected back up toward the low of that swing area and backed off. Intraday, staying below the 1.2484 level would keep the sellers fully in control. A move above and we could see a run back up toward the 100 hour moving average at 1.25117.
On the downside, the 200 hour moving average currently at 1.24121 and 50% retracement of the move up from the April 7 low at 1.24042 are the next downside targets. Get below that combination, and the downside opens up for further declines (and the bias turns increasingly more bearish).
