GBPUSD sellers are currently exerting pressure as the price falls below the 100-hour moving average (blue line in the chart above), which is at 1.3076. Earlier today, the price briefly dipped below this moving average after the US retail sales data but quickly rebounded. However, the upward momentum was limited, and the price reached a high of 1.30977 before resuming its downward movement.
Currently, the price has reached a low of 1.3050, which is close to yesterday’s trading low. To further confirm the sellers’ control, the price needs to break below the swing area between 1.3042 and 1.3050 (see yellow area on the chart above), with the next target being the old broken trendline near 1.3016.
Traders are closely watching if sellers can maintain control by remaining below the 100-hour moving average and pushing through these key levels.
See earlier video below for a complete technical picture for the GBPUSD pair.
This article was written by Greg Michalowski at www.forexlive.com. Source