100 day MA looms below.

The GBPUSD ran above the 100 day MA yesterday after the higher inflation data. The peak in trading yesterday moved above a topside trend line but consolidated in the Asian session.

In the early European session (low liquidity), the price spiked back up to to the topside trend line at 1.2505. Sellers leaned and we have seen more downside since that high.

The pair has moved below the corrective low from yesterday and the 38.2% of the move up from the Friday low. A better and key support target comes in a little lower at the 50% AND the 100 day MA at the 1.24128/199 area. If that line is tested look for the patient dip buyers/profit takers from above to stick a toe in (risk is defined and limited), with cautious stops on a break. NOTE: The 100 hour MA lags behind at 1.23997 now. However, it is moving higher and catching up to the key 100 day MA.

The EURGBP is helping the selling in the GBPUSD today. It has rebounded in trading today and in the process has moved back above the 100 bar MA on the 4-hour chart (at 0.8674 currently - now support). The fall from last week's highs stalled against the 38.2% at 0.86395 (the low reached 0.86429) AND a trend line connecting recent lows.

We trade above the 100 bar MA, but below the topside trend line at the 0.8706 level (and moving lower). Do we retest the 100 bar MA or continue the move higher? It is tough to say honestly. However, how it goes will impact the GBPUSD pair.