Starts to reach lower support targets.
The GBPUSD is trading at a new session low and in the process has started to reach some lower target support levels. The price action lower, has also erased the day's gains with the pair trading above and below unchanged on the day.
At current levels, the pair is testing a trend line connecting the low from Friday and today at 1.2425. A move below that level, and a swing area between 1.2399 and 1.24139, and the flattening 200 hour moving average and broken 38.2% retracement at 1.23994, make that area a key bias determinant for both the buyers and sellers. Hold support against 1.2400 area and buyers are clinging to short-term control. Move below and the sellers add to their control.
Overall, with the pair moving up to swing resistance at the day's highs (see upper yellow area and red numbered circles) and finding sellers, and then subsequently moving back below the 50% midpoint at 1.2446, it did reverse some of the bullish bias with sellers taking a more dominant role. The next shoes need to fall on the break of the aforementioned downside targets to increase the bearishness.
Right here however, the buyers and sellers are battling it out at the next target.
