GBPUSD tests swing area from January

The GBPUSD is trading to a new session low of 1.3365 in the current hourly bar. That low has moved into the swing area from the January lows from January 27 to January 28. Those levels came between 1.33574 and 1.3374.

Last week, the price tumbled through that low swing area on its way to a new 2022 low of 1.3272 (and lowest level since December 22, 2021). Yesterday the low on the gap lower opening reached 1.33157. The price lows on those days, saw the price snap back higher (could not stay below for long). Both those levels would be targets on a break of 1.33574. On a break, traders will treat the area as resistance. Stay below is more bearish.

Of significance technically today was at the high price for the day during the late Asian/early European session stalled right at its falling 100 hour moving average (blue line in the chart above).

The inability to move above that moving average gave the sellers the go-ahead to push the price lower (which they did). Ultimately, if the buyers are to take control, getting back above the 100 hour moving average would be required.

As I type, the price low is testing the 1.33574 level.