Some reasons for a stall
There comes a time when the market says 'Uncle" (or "that is enough"). It is hard to step in and catch a falling knife so you have to be careful in a trending market, but the GBPUSD is heading toward an area where traders might slow the fall (and there might be a bounce).
What are the reasons:
1. The 200 bar MA On the 4 hour chart.
2. The trend line connecting recent lows and
3. 50% of the move up from the August 15 low
They all come in between 1.3154 to 1.31627 area. Moreover the range for the day is extended.
When the market trends like it is doing, traders either ride the trend (and win), trade against the trend (and lose) or watch and wait for a very low risk extreme in an attempt to catch a little of a bounce.
Traders who are short, are always tempted to take profit and if you can find that spot where they are doing that and other traders who are looking to buy a dip with low risk, you can risk a little (don't mess with it if it goes below), with the hope to make more than a little. It becomes a potential "Uncle" point. This area may be the area where there is profit taking and dip buyers.
