Technical Analysis

The GBPUSD moves toward the 200 hour MA.

The 200 hour MA comes in at 1.3101 (call it 1.3100)

As the voters go to the polls (and the market digests Lagarde and the US economic data and US/China), the GBPUSD is trading lower.

In the process, the pair has now moved below the 100 hour moving average at 1.31604, a upward sloping trend line on the hourly chart at 1.3148, and moved toward its 200 hour moving average at 1.31015. Also near that area are swing lows from December 6 and December 11 (see yellow area).  That area comes in at 1.30998 up to 1.3111.  The low for the day just reached 1.31149.  

A move below this area should solicit more selling with the 38.2% retracement of the move up from the November 22 low at 1.30727 as the next target below that the 50% retracement at 1.30246 will be eyed.

On the topside, the buyers will grab back intraday control with the move back above the trend line and 100 hour moving average (at 1.31604).

Taking a view of the weekly chart below, the price is trading back below the 50% retracement at 1.3167 (from 2018 high) and is testing the trendline at 1.3143 area. The 20 week moving average comes in at 1.30909.  Keep that MA level in mind through the election impact over the next few days.  A move below would have traders looking toward the 100 week moving average at 1.30412.  Breaking both would be bearish from a longer-term technical perspective. 

GBPUSD on the weekly chart


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