The GBPUSD traded higher in the Asian Pacific session. That move to the upside saw the GBPUSD move up to test its 50% midpoint of the pairs move up from the June 29 low to the July high. That midpoint level came in at 1.2866. The high price today reached 1.2864 just below that level.
The inability to extend above that level along with the falling 100-hour moving average (blue line in the chart below), keeps the sellers more in control.
Going forward it would take a move above both of those technical levels (the 100-hour moving average is basically at the 50% midpoint level at 1.2866), to tilt the bias more to the upside (at least in the short term). Absent that, and the sellers are winning. The buyers are losing.
On the downside, the 61.8% retracement comes in right near the 1.28000 level. Get below that level and it opens the door for further downside momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source