GBPUSD works on the down day as ups and downs continue

Technical Analysis

Author: Greg Michalowski | gbpusd

The pair is making new lows and looks to test support area

The GBPUSD has seen wild up and down moves this week. On Tuesday, the ball was rolling to the downside and that momentum continued at the start of Wednesday. Then the pair reversed and raced higher, falling 4 pips short of the Tuesday high.

The pair is making new lows and looks to test support area
Today, the pair's price moved below the 100 hour MA and swing area between 1.2999 and 1.3006 and turned buyers into sellers again.  The price has pushed below the 200 hour MA at 1.29687 and the 61.8% at 1.2939. The pair is now testing a swing area (one that has been broken so be aware) at 1.2890 to 1.2901.  Will buyers dip a toe in the water here, or is the trend lower going to continue to and through (with stops on a break). 

On more downside, the low from yesterday at 1.2862 would be the next target (do we go for another lap this time to the downside).  Below that and traders will be eyeing the low from October 7 at 1.28429 followed by the 100 day MA at 1.28279.  

On a move back higher watch the 1.2919 level now as close resistance now (see blue circles). More conservative risk might be at the broken 61.8% at 1.2939.  

The GBPUSD has been on some wild rides.  The fundamental seem to support more bearish with Covid numbers trending higher and further restrictions possible along with Brexit news. However, as we saw yesterday, the wheel of fortune can turn around quickly in this volatile period. So be aware and open for anything.   

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