Selling continues
The GBPUSD has moved to new day lows and in the process took out the lows from Monday and Friday.
The pair is testing a last line of technical support of a cluster of support at the 1.32317 level.
The pair has already moved below the 50% of the move up from the August 30 low at 1.3251, below the underside of the broken trend line, and the lows from Friday and Monday. The moves below this area have attracted buyers over the last few days. Will they show up again? The last time the price traded this low was September 1 when the price rallied higher after better than expected Manufacturing PMI. Risk for shorts is now that 50% level at the 1.3251 level. Stay below and the bears remain in control.
Working in the favor of the the GBPUSD sellers is the EURGBP which is trading at the highs and is also at a key technical area between 0.8482-92. That area has acted as a dividing line between Bullish and Bearish. Key levels here for both the GBPUSD and the EURGBP, but the GBP sellers are in control. They are trending the market today and the currency remains the weakest of the majors.
