The 100 and 200 day MA on the GBP/USD (NYSEARCA:FXB) are converged at the 1.5825. The low is 1.58247. The combination is just too good to pass up for traders looking to book profit form shorts. Risk is defined and limited with a break leading to stops.
Earlier today, the price fell below the 100 week and 200 week MA also close to each other. The 100 week MA is at 1.5892. The 200 week MA is at 1.5878. Yesterday, the low fell between those two key levels at the 1.5878. The 38.2% of the 2012 trading range comes in at 1.58919. This area will be key resistance on any corrective moves higher.