The lows in March and April reached 1.3669 and 1.3668

The GBPUSD traded to swing lows in March and April at 1.3669 and 1.3668. The double bottom was broken in July on its way to the low for the year 1.35711. The price decline at that time also fell below its 200 day moving average (green line).

GBPUSD on the daily chart

Fast forward to the last three days, the price moved back below its 200 day moving average on Tuesday and stayed below that level yesterday (see green line currently at 1.3782). Today the price moved down to retest the March and April lows at the 1.3668 area. The low price reached 1.36646 (3-4 pips below), but has bounced modestly. Traders are trying to stick a toe in the water.

That level will be the barometer for both buyers and sellers today. Right now, the dip buyers are leaning. However, I would expect if there is another move below, there could be sellers who push toward lower levels.

Key level for both buyers and sellers. US stocks set to open.