GBPUSD corrects toward the 200 hour MA and 50% midpoint of the move up from April 12 low.
The GBPUSD has pushed lower in trading today with the help of a soaring EURGBP (more on that later).
Looking at the GBPUSD first, the pair has stepped lower and in the process broke back below its 100 hour moving average. Recall from yesterday, the low price stalled ahead of that moving average level (blue line in the chart above). Today, the price initially moved below the moving average line, tested the low from yesterday, rebounded and retested the 100 hour moving average and rotated down and through the aforementioned low from yesterday at 1.38847.
The price is now below the 38.2% retracement of the move up from the April 12 low. That level comes in at 1.38784. Stay below that level and the close from yesterday at 1.38847 would keep the sellers firmly in control intraday. On the downside, the pair moved closer to key support defined by the rising 200 hour moving average, the 50% retracement and swing levels from April 16 and April 19.
Helping the GBPUSDs decline, is the sharp rise in the EURGBP. The technical story for that pair had the price testing on Monday the 100/200 bar MAs on the 4-hour chart, and the 50% retracement of the move up from the April 5 low near 0.8595. The bounce moved up to test its 100 hour moving average yesterday (blueline currently at 0.86370). Today that moving average line was broken along with a 200 hour moving average at 0.8658. The price has continued to run higher and looks toward the swing high from April 13 at 0.8711, and the high from last week at 0.87182.
For the pair watch the 0.8667 to 0.86735 as close support (swing area). The 200 hour MA will also be key for the bias going forward.