Rebounds after earlier fall
The GBPUSD open lower on the weekend news that PM Johnson was hospitalized. The market price fell below the 200 hour moving average (green line) and toward the Friday low at 1.22037 where the market found risk defining buyers against the level (risk was defined and limited).
Eventually the price was able to base against its 200 hour moving average (green line) and moved higher. The high price stalled in a swing area defined by swing highs and lows going back to March 27 (see red numbered circles and yellow area). That area comes in the 1.23038 1.23292 area. The high price reached 1.23258 just below the high of that area, and rotated lower.
The pair currently trades at around 1.2280 level. On the downside is the rising 200 hour moving average support target 1.22615. On the topside the 1.23038 – 292 area remains a resistance level with the 100 hour moving average as a further target should upside momentum continue (at 1.23534).
On more weakness below the 200 hour moving average, the floor area at 1.22037 from the last 2 days of trading will need to be broken to solicit more sellers toward swing low from March 27 at 1.21430, and the 38.2% retracement of the move up from the March 20 low at 1.20731.
