GBPUSD falls in early NY trade after corrective move earlier. Yesterdays low tested

• gregmikefx
• January 22nd, 2010

The GBPUSD corrected to the 200 and 100 hour moving average area in the 1st half of the new trading day today, and that gave the sellers the opportunity to reenter and sell the market again( green and blue line in the chart above).   The price is now down testing the low from yesterday at 1.6124.  Additional support comes in at the 1.6109 where the 61.8% retracement level is found. This from the low set on January 7th at 1.5895 and the high at 1.6456.

I would expect some buyers against these levels.  but don’t ignore a break as the price is now back below the 200 day MA.  The 200 day MA comes in at the   1.6169 level today and will be an upside resistance level to start the NY trading day.  Yesterday the price moved below this key moving average but closed above the level, keeping the market on the fence.  Today, with the move back below the key moving average,  if the market gains some momentum to the downside, the pair has the potential to make a more substantial break away.

So be aware. Watch the 1.6109-24 level, but remember the 200 day MA

Tickers: GBPUSD

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