Moves toward the rising 100 day MA.
The GBPUSD is is continuing its decline on Brexit deal concerns.
Drilling to the hourly chart above, the pair moved to the lowest level since November 13 into the early New York trading. The fall took the price below a lower channel trend line at around 1.3150 level, but momentum could not be sustained. The low price did reach 1.3133 before rebounding.
The bounce off the low has move back toward a resistance area near 1.31959. That represents the 50% retracement of the move up from the October 30 swing low. A move back above that level is a modest gain for the dip buyers (but the price needs to stay above that level). Note that it also is near swing lows from November 17 and November 19. So there are multiple reasons for it being a bias barometer at least in the short-term (see green numbered circles).
Taking a broader look at the daily chart, the high price in December was able to extend above swing highs from December 2019 and September 1, 2020 (and early December as well). However, momentum could not be sustained and the price has chopped lower since then. On more weakness, the pair is approaching the key 100 day moving average. That level currently comes in at 1.30894 (blue line in the chart below). Back in October/November and again in September, the price action stalled near that moving average line. In October/November the bounce was quick. In September, the pair traded above and below the moving average before moving back higher.
Keep that level among going forward.
