Price slipped below channel trend line after BOE news
The BOE kept rates and asset purchase program unchanged as expected. However they did hint at the prospects for negative interest rates. That sent the GBPUSD lower.
Technically, the initial fall took the price below a lower channel trendline at 1.29084 currently, but found support against its 100 hour moving average at 1.2881. The current hourly bar as dipped below the 100 hour moving average to a session low of 1.28638. The price has traded above and below the 100 hour moving average since then. We currently trade at the moving average level at 1.2881. Traders are sitting on the wall. Which way will the pair fall?
Technically, if the price can stay below the broken trend line at 1.29084 (and moving higher). The sellers are more in control. Traders will still be eyeing the 100 hour moving average for the next bias clues. On more downside momentum, the next target low comes in at the swing lows from Tuesday's trade at 1.28401 and 1.28129 respectively. The low for the week was on Monday at 1.2768. The low last week reach 1.27614.
If the 100 hour moving average can hold support and sellers turned back to buyers, a move back above the broken trend line at 1.28084 will be eyed. A break above would have traders targeting the 200 hour moving average at 1.2943.
For now sellers remain more in control.
PS EURGBP is helping the downside bias as it rises and the race is some of the declines from yesterday.It has moved above its 200 hour moving average at 0.91387, and tests the underside of a broken trend line at 0.9165. The 100 hour moving average looms above at 0.91923.
PSS While the GBPUSD moves lower, the EURUSD trades nearer it's highs after earlier declines.
