Seller next target is to get below 1.3173
The GBPUSD has been moving to the downside over the last few hours of trading and the last push has been able to break below the 200 hour MA at 1.31962, a trend line at 1.3193 and the 50% of the move up from the October 6th low Stay below is bearish (close risk for shorts intraday).
The next hurdle for the shorts is to break the 1.3173 level. Looking at the hourly chart above, I count at least 5 swing levels there. On Thursday last week (October 12), the pair moved below the level (and the 100 hour MA) on the way to the week's lows. When the price recovered back above the level (red circle 5 area), the buyers raced in to take the price higher. A move below the 1.3173 would have traders looking toward the 61.8% at 1.3145.
The range today in the GBPUSD is up to 111 pips. The 22 day average is 114 pips. So we are at that internal clock level for the market that may give cause for pause. So despite the break below the 200 hour MA/trend line, there may be some shorts which take some profit (and go golfing instead). However, that 200 hour MA still needs to be retaken for buyers to be confident (sellers to lose some control). The dip buyers should also be wary of a break of the 1.3173 level as it could run more.
