Forex technical analysis: GBPUSD exploring the downside again

Technical Analysis

Author: Greg Michalowski | gbpusd

Holds the 100 hour MA above

The GBPUSD is making a play to the downside - trading at new session lows. The range is still very narrow at 60 pips so there is room to roam.  A lower trend line and low from yesterday are being tested now.  A higher trend line at the 1.2206 level is now close resistance for the sellers. Stay below and the bears remain in control.

It was just a few hours ago that traders were making a play to the upside, but the pair ran into sellers against the 100 hour MA (blue line in the chart above - bearish).  If the price can not break above, it must go lower, and that is what it has done.. Comments from UK Hammond have also helped the more bearish tone (click here). 

The 1.2170 and then 1.2155 are the next targets on a break. The 1.2155 is the underside of the broken trend line. At the low correction yesterday in the NY session, that line was tested and held support.  
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