Corrective run higher, runs out of steam and tumbles back down
The GBPUSD has fallen back below it’s 200 hour MA at 1.3311. The pair also fell below a swing area between 1.3309 and 1.33116. The pair moved down to test Tuesday’s low at 1.32912.
The run back to the downside erased the early New York session gains which is all the price move back above its 100 hour moving average 1.33499 (blue line in the chart above). Although the price moved above that moving average level, hourly bars could not close above. After two tries, the buyers turned to sellers and leaned against the moving average line and pushed lower.
With London traders gone and stocks and bonds closing at 1 and 2 PM ET respectively, price action is likely to quiet down. Nevertheless, the bias has dipped more to the downside as the market moves toward the week end. If the price can stay below the aforementioned levels, the sellers would be more in control.