The GBPUSD is tilting to the downside and in the process is testing its 200 hour moving average 1.1961 and a key swing area on the hourly chart between 1.1941 and 1.19543. The low price just reached 1.19539 the current price is trading at 1.1971 on the bounce back.
The swing area is defined by the swing highs going back to November 16, November 17, November 18 and November 23. Yesterday the price low reached into that area and bounced near the close. Today in the Asian session, the price moved up to a high near the 100 hour moving average at 1.2060 currently (blue line in the chart above). However, sellers leaned near the level and pushed the price back to the downside.
The 200 hour moving average and swing area needs to be broken with momentum to increase the bearish bias. So far, the dip buyers are making a play.
It would now take a move back above the 38.2% retracement of the move up from the November 17 low at 1.2003 to give the dip buyers some additional intraday comfort. Failure to do that and the key support down to 1.19416 would likely be pressured again.
The move below that level would have traders looking toward the 61.8% retracement of the move up from the November 17 low at 1.1911.
