Stepping back some of yesterday's gains
The GBPUSD is stepping back some of the gains from yesterday. The start of the catalyst today was the failure on the break of the topside trend line.
We currently are moving toward a lower trend line at 1.4277 and below that the 100 hour MA at 1.42577.
The sellers sold highs (and an overextended market), but with the price above a lower trend line and 100 hour MA, sellers still have to be cautious.
Drilling to the 5 minute chart, traders can keep a close eye on the 1.43038 and then the 100 bar MA at 1.4311.
The 1.43038 was a floor that became a ceiling on the first test (see red numbered circles). A move above that level, and then the 100 bar MA, starts to take some of the sting out of the downside move/bias.
Overall, sellers sold an overbought market and longs took profits. However, the move lower is under control so far. A move back above the 1.43038 level and then the 100 bar MA on the 5-minute chart. Those technical moves will start to make the bias a little more bullish in what has been a bearish day.
