Corrects to a swing area above and below 1.3000 level
The GBPUSD has moved to a new session low in what has been an up and down trading day for the pair.
Looking at the hourly chart, the run to the downside has moved into a swing area defined by recent highs and lows. That area - between 1.2999 and 1.30064 is around the natural 1.3000 level. An upward sloping trendline cuts across near the level as well.
A move below the 1.3000 level will be eyed by the sellers if the pair is to continue its probe to the downside. The rising 100 hour moving average currently comes in at 1.29803 and would be another target on further selling.
The run to the upside yesterday saw the pair reach the highest level since September 8th. On the hourly chart above, the price extended above a topside trend line on its way to the high for the day at 1.3082, but that break failed and buyers turned to sellers.
Looking at the daily chart below, that move higher yesterday tested the 50% retracement of the move down from the September 1 high at 1.30777. It did move above by about 4-5 pips but it too ran out of steam. So breaks on both the hourly and daily thwarted the upside run.
Now with the price lower, the Sellers are making a play (albeit in choppy trading). Getting below the swing area on the hourly chart (and 1.3000 level) followed by the 100 and 200 hour MAs (at 1.29816 and 1.2953) would kickstart more selling (or provide support for dip buyers). That is the roadmap going forward for the pair.
