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GBPUSD Tests/Stalls Near 200 Hour MA.

The GBPUSD (NYSEARCA:FXB) has also had trend like symptoms to the downside today. The intraday declines (see chart below) have been accompanied by shallow-ish corrections indicative of a market where the shorts are in control. Over the last hour or so, the price has been testing the 200 hour MA (green line in the chart above) at the 1.5610 and there is some reluctance to fall. Support defines risk and risk is limited. So profit taking may look to take the pair up.

I will be watching the 1.5629-37 area for clues for the continuation of the trend. If the price cannot extend above this area it says to me the shorts are still in control. Look for further selling. If the correction level is broken, the trend move is likely to consolidate for a while.

http://www.forexlive.com/blog/2012/06/21/gbpusd-testsstalls-near-200-hour-ma/