A break would swing the bias more to the downside
The GBPUSD fell and bounced off the 100 hour MA and the 100 bar MA on the 4-hour chart earlier in the day. That was off earlier Brexit headlines. The pair recovered to the black on the day, but are now seeing the pair "leak oil" and head lower again.
We just cracked below the 100 hour MA and the 100 bar MA on the 4-hour chart at 1.3377-78 and are making new lows on the day. That is more bearish and should weigh on the GBPUSD.
With more momentum, the lower trend line comes in at 1.3360 and below that the pair may wander down toward the 50% of the move up from the May 29th low and the 200 hour MA at 1.3337 and 1.3332 respectively.
Risk for sellers/shorts looking for more downside is at 1.3398 now (see chart above). Stay below and the sellers should feel comfortable. A move above and the waters are more muddy and leave traders scratching their heads. I am looking for sellers to try and take more control, but the price has to stay below the "red line" in the chart above.
