Technically, the trend line stalled/100 hour MA rebroken
The GBPUSD is moving back lower. Is it the Fed news about meetings (maybe) or “sell the fact” after the amendment votes (maybe). Technically, the bullish momentum lost some of its mojo.
The pair had moved higher on the amendment votes, which went in favor of the government (defeated the House of Lords amendments). The most important one was the so-called “meaningful vote” amendment. However, that amendment was not passed without concessions that gives parliament some powers to propose a new amendment in the House of Lords if there is no deal by the end of November..In other words, revert back to today for another vote.
Technically, the high reached a topside trend line and tried to extend higher. However, momentum could not be sustained, the price moved back below the 100 hour MA (blue line at 1.34024) and the price moved back toward the 200 hour MA (green line at 1.33734).
Putting the price action into perspective, it ends up being a choppy day today. There was UK employment data (mixed), there was US/N. Korea (some good and some not so good), there was amendment votes (but not without concessions). Then there were the technicals that provided some guardrails and bias clues.
We sit near the middle of the range. The 200 hour MA, 50% and lower trend line are eyed below. On the topside, the 100 hour MA and the topside trend line are the targets.
Tomorrow will be kinda like today. There is UK CPI, US PPI, 4 more amendment votes and the FOMC rate hike. Does all the “stuff” and risk keep the pair confined with the guardrails, or is there a break.
It is hard to predict how the events may pan out, but hopefully the technicals are able to give us traders some direction. Be prepared it could be another choppy time. It could also break out.