Price below the 50% of the move up from the August 20 low
The USD is moving higher and that is true vs the GBP as well.
The GBPUSD is traded to a new session low and in the process is testing the swing lows from last weeks trading between 1.3730 and 1.3733. There are other swing levels going back to August 16 that bottom near 1.37257 (see yellow area and red numbered circles).
A move below the 1.25257 level should open the door for a test of the 61.8% retracement of the move up from the August 20 low at 1.37122. Below that, and traders will eye the 1.3700 level followed by the 1.37928 swing level.
After moving to the highest level since August 9 last Friday, the price is now down for three consecutive days. Yesterday the pair fell back below its 100 hour moving average and 200 day moving average near 1.3820 area, and traded above and below its 200 hour moving average into the close (see green line).
In trading today, the Asian session high stalled near that rising 200 hour moving average (currently at 1.37913). The inability to move above that moving average gave the sellers the go-ahead to push lower.
Dollar buying over the last hour has taken the price back below the 50% midpoint of the move up from the August 20 low at 1.37464. That midpoint level is now a close risk level for sellers looking for more downside. Stay below is more bearish.
