PM May talk on Brexit on Tuesday

The GBPUSD has moved below the 200 hour MA on a headline that PM May to give a major speech on Brexit on Tuesday.

The 200 hour MA stall the decline earlier in the NY session. Not this time. The MA now becomes resistance for the pair.

The fall takes the price down to the next support area in the 1.2219 to 27 area. The 100 hour MA is below that as another target at 1.21929. Around that area are swing lows from Dec 28 and Jan 3. In trading yesterday, the Asian session high stalled around that area too.

So I would expect that given continuation selling, that area should give traders some cause for pause, with a move below opening up the bearish flood gates more.

PS the EURGBP is off to the races. The pair is testing the 50% of the move down from the October high at the 0.8742 level. The high from Tuesday reached 0.8762. The topside trend line form the October highs comes in just above that at 0.8766.