Anxiety remains on Brexit
The GBPUSD tried to rally on the back of the weaker US data. The Brexit anxiety remains which limited the buying. WH Kudlow is now saying there are glitches in the data.
The gains off the US data was already limited (dollar selling).
Now those gains are reversed. The GBPUSD trades at the session lows and in doing so, is trading at the lowest level since January 15th.
Technically, looking at the daily chart above, the high today stalled just ahead of the 100 day MA at 1.28824 (high reached 1.2877). The fall today, has taken the price below the 50% retracement at 1.28346. The high after the US data stalled at 1.2837,just above that 50% level. The inabiltiy to find more momentum, has helped the bears run the pair lower.
The next target on the daily chart comes in at 1.27445. The 50% is now risk for traders. Stay below keeps the bias in the favor of the bears.
Now, drilling to the 4-hour chart below, the pair is approaching a lower trend line at the 1.2771 level. The low for the day has reached 1.2774. A move below would open the downside for a run toward the 1.27445 level on the daily chart,but we can not rule out risk focuses buyers leaning against the line with stops on a break. Risk can be defined and limited.
So bears in control. Support being tested. Stops on a break.
PS the EURGBP is trading to new session highs too and in the process squeezes toward the 100 and 200 day MA and 50% retracement at 0.88509 and 0.88582 area.