GBPUSDs big reversal. Back down testing 100 day moving average at 1.6310 and other support

• gregmikefx
• January 19th, 2010

The GBPUSD moved higher earlier today on Kraft/Cadbury merger agreement and the much higher than expected CPI. However, the market started to reverse and the sharp fall has taken the pair back toward the support at the 100 day MA which is currently at the 1.6310 (see chart above).

There is also a trendline support line which comes in off the hourly chart at 1.6303 currently, and finally the 100 hour MA off the same chart (blue line above)at 1.6308.

The 3 levels of support will likely slow the decline. However, a break will  likely lead to further downside momentum with a longer term target at the 1.6242. This level is the 38.2% retracement of the move up from the January low of 1.5896 to the high at 1.6456 today.

The big reversal also has the GBPUSD down on the day now with the close yesterday at the 1.6341 level being a level of resistance in early trading today. Additional resistance comes in at the 1.6354 level. This level is the midpoint of the move down from the November high to the December low.

Tickers: GBPUSD

blog comments powered by Disqus