Brexit news continues to flow
PM May played a final card by offering to exit on Brexit, but the DUP is not all coming on board and that has the no-deal Brexit worries continuing today.
Technically, the pair in the Asian session cracked below the 100 hour MA (blue line), corrected up to the line (with a small break at the high). That stall, gave the sellers the go ahead to sell and the pair has wandered/chopped lower.
The low has reached the 61.8% retracement of the move up from the low last week at 1.31042. The 1.3100 level is also a natural support level. There are no significan option expires at the 10 AM NY option expiration today.
Drilling to the 5 minute chart below, the last spike high after GDP, stalled just ahead of the 100 bar MA (blue line). For intraday traders, the 100/200 bar MAs (blue and green lines) are risk/bias defining levels. Stay below keeps the sellers more in control. Move above, muddies the waters for the bears (the price has stayed below the 200 bar MA for the whole trading day today). Those MA come in at 1.3154-66 currently and moving lower.
Be aware that headlines could lead to a spike higher. So those MAs are risk defining levels for stops.
Closer risk, now that the GDP spike has come and gone, might be the 50% midpoint on the hourly chart at 1.31356. The price spiked above it on the GDP data (and before that as well), but now that it has failed on 5 bars, traders may look to use it as a ceiling/risk level. Eye the level on corrections.
