The GBPUSD has taken a further dip to the downside, extending the range for the day to 87 pips. The 22 day average is about 107 pips.
In the process, the price has moved below the 1.3080-85 swing area. The area was resistance and then support on the way higher over the last few days. The next key target on the downside is the 100 hour MA (rising at 1.3158). The price on Tuesday tested that MA (and the 200 hour MA) and found willing buyers. That gave the buyers that incentive to buy. They have been helped this week by more positive Brexit headlines from the EU and UK.
Having said that, yesterday’s trading was full of lots of ups and downs (tired?). The big clue for sellers (at least for the day) came when the ceiling was broken by about 11 pips and failed. That was the invitation for the buyers to turn to sellers.
So, the pair had reasons to correct and correct it has. The price is trying to take out the first target area (swing area). The 100 hour MA looms. I would expect buyers to slow the fall near that MA with a break, leading to more downside probing.
ON the topside watch the 1.3217 for sellers. That was the high from September 26th. On Wednesday it also capped the rise. Stay below keeps the sellers more in control.