DUP says talks with PM May have not gone as well as they had hoped.

The GBPUSD has slipped to new session lows (and back below the 100 day MA at 1.2628) after the DUP said the talks with PM May have not gone the way they had hoped. This is the second look below the 100 day MA today. The first could not keep the momentum going. However, the correction stalled near the 38.2% of the last trend leg lower. That is the 3rd test of 38.2% retracement that held today (see 5 minute chart). The sellers remain in control.

For this pair, I would think that the focus will now be on the 100 day MA. Stay below and sellers still in control... today. Move above and the market is simply not ready to make the next step below the key 100 day MA. That might be temporary, but we should see more of corrective move into the NY afternoon session.

For now the sellers remain more in control as the market continues to trend.

Downside targets:

  • 1.25779: 50% of the move up from the March swing low
  • 1.25592: 200 day MA at
  • 1.2539 Broken trend line
  • 1.2518: April 18th low. That was the day the snap election was announced.