Support could not be broken
The GBPUSD moved sharply lower on the rejection of the latest attempt to push PM May's deal through (well half of it). The 1.3004 floor from March 12 and March and today, but the 200 day MA target proved to be a harder nut to crack. After waffling between the 200 day MA and the 1.3004 area, the area has given way to the upside and some shorts are covering.
The price just moved back above the old floor and some offside shorts are covering. The longs against the 200 hour MA, may also be sticking it to the shorts just for giggles.
What next?
Well, the 38.2% to 50% of the move down today comes in at 1.3036-55. The 100 and 200 bar MA on the 5-minute chart comes in at 1.3055-597. Those are the the next targets that may hold the rallly or give way and squeeze more. A move above the intraday moving averages would be a head scratcher for many, but it would weaken the hand for the shorts.
