The GBPUSD continued its fall in trading today extending below its 61.8% retracement of the move up from the December low to the January high at 1.33838, and also moving into a swing area started in November and continuing in December.
That swing area came between 1.33524 and 1.33757 (see red numbered circles on the daily chart above) and also defined the lower extreme that ultimately took the price down to 1.31588. Traders have used that level as a support target today. The price has rebounded modestly on the pause in selling.
This week, the price of the GBPUSD extended below the 100 day MA (blue line) on Monday, and has stayed below that level . Yesterday, the high price stalled against that level and rotated back to the downside. The bears took and kept control.
With the price stalling in the swing area, there is some cause for pause. However, of the daily chart close resistance comes in at 1.3411 (low from September. Stay below that level keeps the sellers firmly in control. The 50% midpoint of the move up from the December low at 1.3453 is another upside resistance target.
Drilling to the hourly chart below, the pair has been stepping lower since the pair failed on the breaks above the 200 day MA back on January 13 and January 14. The pair on the way lower had a break above the 100 and 200 hour MA on January 20, but that break failed. On Monday, the break below the 100 day MA (overlayed on the chart) tilted the bias more to the downside. The corrective move higher saw the price action not only stall against that 100 day MA, but also the 100 hour MA (blue line currently at 1.34913. Bears remained in control.
The 38.2% to 50% of the move down from yesterday's high comes in at 1.3421 to 1.34407. The swing lows from Monday and Tuesday are also in that area. That level will now be close resistance intraday. Stay below and the sellers are firmly in control.
