Bias is tilted to the downside
As noted in a post yesterday:
The GBPUSD had some up and down swings last week that ending with a relatively more confined Friday with increased up and down choppiness as traders just beat up on each other.
The beating up of each other continued today with spikes higher and lower. The high price reached 1.29785. The low 1.29099. The pair is currently trading near unchanged at 1.2943 which is near the close from yesterday at 1.2945.
The high price today at 1.29785 and another high at 1.29745 stalled within a swing area between 1.2970 and 1.29785. It also was just above the 200 hour moving average 1.29697. Holding resistance in that area gives the pair a bias tilt to the downside. Stay below the 1.29785 and sellers are more in control.
Also of note currently is the prices below the now falling 100 hour moving average at 1.29489. That also helps to tilt the bias to the downside (although price action today has been above and below that moving average on a number of hourly bars).
On the downside, watch the 1.29191 level (see green numbered circles). The price did move below that level today but quickly reversed. The next hourly bar stalled against that level. If the price can extend below and stay below, the next target area would be a another swing area between 1.28829 and 1.28904.
Although sellers are in control, they are still remains a lot of chop in the market price action. Nevertheless at some point the market will decide on which way wants to go. In the meantime follow the technical levels. Be patient. Take a loss if the price doesn't go your way (remember traders are beating up on each other), and don't be afraid to take some profit at key support or resistance levels.