The GBPUSD initially moved higher on the word of Boris Johnson's imminent resignation (relief from the constant barrage?). The price rise, however, had it's limits.
The high price reached back above the 1.2000 natural resistance level, reaching a high of 1.20207. That took the price above its 100 hour moving average at the time at 1.20193, and the 50% midpoint of the week's trading range at 1.20196. However, a break by 1 pip or so of those dual technical levels could not be sustained. In fact sellers leaned, and quickly push the price back to the downside. The price has reached a North American session low of 1.1947. The current price is trading at 1.1960.
Looking at the hourly chart above, the swing low from last week stalled at 1.1975. A swing low going back to June 15 stalled at 1.19876. The 38.2% retracement of the move down this week comes in at 1.19855. Getting above all those levels and the falling 100 hour moving average at 1.20155 currently, would be needed to give the buyers some needed confidence. Absent that and the sellers remain in control.
On the downside, the price action over the last 2 days has seen the price move above and below the swing low from June 14 at 1.1933. In trading today, the price moved back above that level, and stayed above on the dip in the early European session (a small positive in a bearish market). Moving below 1.1933 is the next downside target.
Get below would put the price in the lower extreme area with the low from Tuesday at 1.1898, and the low from yesterday at 1.1875 as the next downside targets.
