Trades in the middle of a channel
As the UK government struggles with leadership issues and stalemate on Brexit progress, the GBPUSD erodes (a stronger dollar today is helping too).
Looking at the hourly chart, the pair is trading above and below the 1.2800 level currently. The low reached 1.2793. The current bar high reached 1.2809. That sits between a topside trend line on the hourly chart at 1.2842 and a lower trend line at 1.27708 (see yellow area in the chart above). Both levels are moving lower over time.
Those levels will help to define the bias as traders mark the price lower and lower. The high this week was on Monday at 1.3040. The pair has been lower each successive day this week.
Drilling to the 5-minute chart below, the price consolidated in the Asian session before running into the 200 bar MA and falling lower. The 100 bar MA and the 200 bar MA stalled the rally in a corrective move higher in the European morning session.
The last correction off the low for the day, stalled ahead of the 38.2% at 1.28123. The 50% is at 1.28183. The falling 100 bar MA (blue line on chart below) is at 1.28239. Each of those hurdles would weaken the trend move lower if they are broken (risk for shorts intraday now). Until then, if short and like the trend, the sellers remain in control.