The swing area comes in at 1.2441 to 1.24748
The GBPUSD high for the week was on Monday at 1.31996 (call it 1.3200). That was just below January highs at 1.3208 and 1.3211 from January. The run to the downside is trading at new session lows at 1.24568 currently. That's a move about 750 pips to the downside. That is a big move.
In the process, the price has moved below its 100 day moving average at 1.29779, its 200 day moving average at 1.27015 and the 61.8% retracement of the move up from the 2019 low to the 2019 high at 1.25522. That level was broken today.
The pair's move to the downside has now reached a swing area in the 1.2441 to 1.24748 area (see green numbered circles). That swing area was started back in December 2018. Admittedly there was some trading above and below that level in July and again in September. However in October, the price tested the topside of that area at green circle for, retraced to the 100 day moving average and shot higher. We are back in at swing area. Expect some dip buyers with stops below the 1.2441 area.
Drilling to the hourly chart, the price is breaking to new lows for the week. What is a concern for dip buyers (and why if you are to buy, be sure to protect yourself with a stop), is that the corrective highs both yesterday and today have seen sellers against the underside of the broken trend line (see chart below). The inability to extend back above that trend line has given the sellers to go ahead to push lower into the support area. It would take a move back above that trend line to give a more bullish technical view (the minimum actually).
