GBPUSD stalls near swing area ahead of 2021 low

Technical Analysis

Author: Greg Michalowski | gbpusd

Swing area between 1.3392 to 1.34149

The GBPUSD moved lower on the Powell news as rates moved higher and the dollar was bid. The price low reached 1.3389 which was a few pips below the low of a swing area ahead of the low extreme at 1.3392. The 1.3392 to 1.34149 is home to a number of swing lows/highs going back to November 9 (see red numbered circles).  

Swing area between 1.3392 to 1.34149
The current price is trading right around 1.3401 between that swing area.  

A move back above 1.34149 would have traders looking toward the 200 hour MA (green line) and 100 hour MA (blue line) at 1.34374 and 1.34575 respectively(watch 1.34493 as well).

Absent that type of technical move higher, and the sellers are still in control with a break of 1.3392 opening the door for a run toward the 2021 low at 1.33524. Below that and 1.33117 followed by a lower trend line on the daily at 1.3296 are targets.  

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